hɛdʒ fʌnd

Noun

  • Hedge funds are speculative funds which make large bets on market movements. They utilize borrowed money to substantially leverage their returns (and losses), often at a factor of ten to one, or more. They purchase exotic securities and also take substantial short positions when they think the market or a particular sector of the market will go down.
Example Sentence: Hedge funds are extremely risky and are suitable for high-wealth investors only.
 
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