what is a hedge fund? a jargon-free guide 

The difference is that the fund manager has broader discretion to invest in a wider variety of financial products other than just stocks and bonds.

At its most basic, a hedge fund is a partnership between a professional fund manager and investors. The manager and investors pool money into a fund, using different strategies to grow the fund.

What Is A Hedge Fund?

While there are hundreds of strategies employed by hedge funds, most can be grouped into four main categories: – Global macro – Directional – Event-driven – Relative value

Hedge Fund Strategies

Hedge funds implementing a global macro strategy look at the big picture economic and political trends worldwide and attempt to capitalize on these large-scale ideas.

Global Macro Strategy

A directional strategy hedge fund uses market trends and directional market movements to identify equities or other securities.

Directional Strategy

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