Hedgefund (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 wealthy investors decided to pool their assets and create a hedge fund to manage their portfolios more aggressively.
- A hedge fund investing in distressed properties reported substantial profits as the real estate market began to recover.
- Due to the high minimum investment, hedge funds are generally inaccessible to the average investor and instead cater to institutional clients and high net worth individuals.
- Some hedge funds have been criticized for their perceived contribution to market volatility, which can harm other investors and even cause economy-wide issues.
- When John decided to start his own hedge fund, he spent years developing a strong network of investors and refining his unique investment strategy.