All about hedge funds,Inc in Active Trader Links Directory

Hedge Funds or Hedged Funds or Hedge Fonds are funds that use different strategies to compensate against losses. For example, in equity market, hedge funds use short-selling (borrowed stocks) trading strategy to compensate against market downturn. There is no proper definition for a hedge fund but these funds can be easily identified by some key characteristics like investment style, investment size, investment fees, everage options etc. Hedge funds are for highly sophisticated investors and not for general public. In reality hedge funds are loosely regulated private pool of money which invests in all kinds of legal investments to maximize the returns. It can be equities, futures, currencies, commodities, bonds, real estate and even they invest in Weather Derivatives (betting on weather conditions) or even seed capital start-up companies like private equity / venture capital funds. Unlike mutual funds, hedge funds have no restrictions on where they could invest or in what they could invest in.

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