| Hedge Fund | |
 An aggressively managed fund portfolio taking positions in both safe and speculative opportunities. |
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 Most hedge funds are limited to a maximum of 100 investors. And for the most part, hedge funds (unlike regular mutual funds) are unregulated because it is assumed that the people investing in them are very sophisticated and wealthy investors. Don't be fooled by the name: hedging is actually the practice of attempting to reduce risk, and the main goal of a hedge fund is to get a maximum rate of return, using strategies involving options, short selling, and leverage. On the other hand, because they often use futures, swaps, and arbitrage strategies, you could argue that hedge funds diversify away some of the investor risk of the stock market. |
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 Introduction To Hedge Funds - Part One - Learn everything you need to know about the characteristics and strategies of hedge funds. Introduction To Hedge Funds - Part Two - Discover the advantages and pitfalls of hedge funds and the questions to ask when choosing one. Funds of Hedge Funds - Higher Costs and Risks for Higher Potential Returns - Know the costs and risks of this security, which is registered with the SEC but invests in unregistered, private hedge funds. Taking A Look Behind Hedge Funds - Some of these claim consistent returns even in declining markets, but they're not immune to risk! |
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