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Hedge Fund

A private investment fund for wealthy or institutional investors that uses flexible strategies, often…
In plain English

A private investment fund for wealthy or institutional investors that uses flexible strategies, often with leverage and short selling.

A hedge fund pools money from large investors and is allowed to do things ordinary funds usually cannot: short selling, heavy leverage, derivatives, concentrated bets.

Despite the name, many do not hedge much at all. Strategies range from global macro and long/short equity to computer-driven trading. They are big players in forex.

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