How Hedge Funds Work

Hedge fund: what is it?

A hedge fund is a private equity fund type, which is aimed at profit maximization and risk minimization. In fact, any hedge fund is an asset pool of a group of investors, which is managed by professional traders and risk managers. One of the distinctive and important features of hedge fund activities is a soft and loyal regulatory policy by the countries where they were registered. Hedge funds implement complicated multilevel trading strategies, short selling along with buying, margin lending, and trading derivatives. Major participants of hedge funds are a manager and investors.