Hedge Fund
/ˈhɛdʒ fʌnd/
Definitions
- (n.) A pooled investment vehicle that employs diverse strategies to earn active returns for its investors, often involving high-risk, less-regulated practices.
The hedge fund invested heavily in derivatives to maximize profits.
- (n.) A private investment fund typically structured as a limited partnership or limited liability company, often catering to accredited investors under securities law exemptions.
Regulations require hedge funds to disclose certain information to their qualified investors.
Forms
- hedge fund
Related terms
See also
Commentary
In legal drafting, hedge funds are distinguished by their regulatory exemptions and complex structures; precise terms like 'limited partnership' and 'accredited investor' often appear with hedge fund discussions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.