Knowra Hedge fund Hedge fund A privately organized investment fund that pools capital and uses flexible strategies, often with limited investor access and fewer regulatory constraints than mutual funds.
Limited partnership : A business structure with general partners managing the enterprise and limited partners whose liability is restricted to their investment. Many hedge funds use this structure to separate management from outside investor capital.
Long–short equity : An investment strategy that holds long positions in selected stocks and short positions in others. This strategy can express relative views on companies while reducing broad market exposure.
Mutual fund : A pooled investment vehicle that sells shares to investors and is generally subject to extensive regulation. Mutual funds typically offer broader access, stronger retail protections, and tighter strategy constraints.
Accredited investor : An investor meeting financial or professional criteria that permit participation in certain private offerings. Eligibility rules often restrict who can invest in hedge funds.
Investment management : The professional management of financial assets to meet investment objectives. Hedge funds are investment-management businesses built around delegated portfolio decisions.
Global macro : An investment strategy that takes positions based on economic and political trends across countries and markets. Macro funds use flexible mandates to trade rates, currencies, commodities, and equities.
Exchange-traded fund : An investment fund whose shares trade on an exchange, often tracking an index or holding a managed portfolio. ETFs trade throughout the day and commonly provide more liquidity and disclosure than hedge funds.
Securities and Exchange Commission : The United States federal agency that regulates securities markets and enforces federal securities laws. SEC rules govern important aspects of U.S. hedge-fund advisers, reporting, and offerings.
Short selling : The sale of borrowed securities with the aim of buying them back later at a lower price. Short positions let funds seek gains from falling prices and hedge long positions.
Event-driven investing : An investment approach that seeks returns from corporate events such as mergers, restructurings, or bankruptcies. Event-driven funds target price changes linked to specific corporate developments.
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