Hedge Fund is an investment fund that invests into a wide range of financial and commodity instruments, and thus is not subject to prudential supervision as other investment funds. Although they are not secured funds, the hedge fund strategy is to achieve returns (ROI) whether financial markets are rising or falling. They are usually set up and managed by a group of investors who know each other, have their share in hedge fund and invest together.
Hedge funds often invest in high-risk areas and use various investment strategies and financial instruments such as short selling and investment leverage.
What is hedge fund for?
Hedge funds are not among the commonly used financial instruments for investing available funds of the companies, although it is in principle possible. Hedge funds can invest in the contrary in companies or projects with high growth potential (e.g. in startups).
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