Verbull Word of the day
Finance glossary

Hedge Fund

Investing · advanced
Definition

A lightly regulated fund using advanced strategies for wealthy investors.

A hedge fund pools money from accredited and institutional investors and pursues aggressive strategies, including leverage, short selling, and derivatives, aiming for high returns in any market. They charge high fees, often two percent of assets plus twenty percent of profits.

In a sentence

The hedge fund used leverage and short selling, charging two percent of assets plus twenty percent of profits.

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