What is a hedge fund? How does it differ from other investment vehicles?
Hedge funds are private equity firms that invest in stocks, bonds, commodities or real estate. They also provide investors with access to high risk/high reward opportunities.
This post is originally from my website www.portfolio-hub.co.uk
Hedge funds are often considered to be risky investments because they are highly leveraged. This means that they borrow large sums of money to purchase assets. The returns generated by these investments are usually higher than those of mutual funds.
What Is a Hedge Fund
A hedge fund is an investment vehicle that pools money from many investors and uses it to invest in securities, commodities or other financial instruments with the goal of generating profits for its investors. The name comes from the fact that these funds are used as hedges against risk.
History of the Hedge Fund
The first hedge fund was established by Paul Tudor Jones in 1976. It was called the Quantum Fund. In 1980 he founded the Tudor Investment Corporation which became one of the most successful hedge funds ever.
A hedge fund is referred to as an institutional investor. An institutional investor is any type of company or organization…
