Hedge Fund (Noun)
Meaning
A flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging.
Classification
Nouns denoting groupings of people or objects.
Examples
- The billionaire investor founded a hedge fund that focused on high-stakes trades and generated substantial returns for its limited number of clients.
- Hedge funds have become increasingly popular among institutional investors seeking higher yields in a low-interest environment.
- The hedge fund manager utilized a variety of aggressive strategies, including short-selling and heavy leveraging, to maximize returns for the fund's investors.
- After losing a significant amount of money in the stock market, the wealthy family turned to a hedge fund in hopes of recouping their losses through more sophisticated investment techniques.
- The financial regulations surrounding hedge funds are generally less stringent than those governing traditional mutual funds, allowing for greater flexibility in investment strategies.