Hedge Funds

"Hedge funds pool investors’ money and invest the money in an effort to make a positive return. Hedge funds typically have more flexible investment strategies than, for example, mutual funds. Many hedge funds seek to profit in all kinds of markets by using leverage (in other words, borrowing to increase investment exposure as well as risk), short-selling and other speculative investment practices that are not often used by mutual funds".

Source: https://www.sec.gov/files/ib_hedgefunds.pdf

SEC - Hedge Funds.pdf

Download PDF • 618KB