Hedge fund

From Traderpedia

A managed investment where the fund manager is authorised to use derivatives and borrowing with the aim of providing a higher return.

A fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Hedge funds are exempt from many of the rules and regulations governing other mutual funds, which allows them to accomplish aggressive investing goals.

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