Hedge Fund

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What is a Hedge Fund?

A hedge fund is an investment partnership or collective investment. With a hedge fund, the money of investors is pooled together, and strategies are used to make money. These alternative investments are handled by a manager and are supposed to make money regardless of increases or decreases in the market.

Hedge Fund Examples

Pros of hedge fund investing:

  • Example 1. Funds are flexible
  • Example 2. Diversification is offered

Cons of hedge fund investing:

  • Example 1. High fees are involved
  • Example 2. Money is tied up for years
  • Example 3. Higher tax burdens associated

Check out this article about hedge funds.

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