What is a Hedge Fund?

Blogged under Stock Market by Administrator on Thursday 25 August 2005 at 12:38 pm

In short, a Hedge Fund is a term referring to the practice of sell short some stocks while buying others. By doing this you reduce, or “hedge,” the market risk. In recent times hedge funds more often than not avoid trading stocks, rather “hedge fund” has developed into a relatively unregulated investment fund. Usually this unregulated investment fund is in the form of a partnership characterized by unconventional strategies.

For a more in-depth definition of the term “hedge fund” please chck out the following link: http://www.magnum.com/hedgefunds/abouthedgefunds.asp

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