Call Us: (212) 729-5067

Hedge Fund Definition

What is a Hedge Fund?

A Brief Explanation of a Hedge Fund | Definition

A hedge fund is a privately managed type of investment fund. Hedge funds vary in size, location, and strategy and are subjected to different regulations in different countries. Common strategies include global macro, directional, event-driven, and relative value. In the United States, hedge fund participation is limited to accredited investors as defined by the Securities and Exchange Commission (SEC). A hedge fund will pool investments from investors, or limited partners, and purchase equity in companies. A hedge fund differs from a private equity fund in that a hedge fund normally does not take a direct management role in its investments. However, sometimes activist managers of hedge funds will attempt to gain influence in a company through board seats or acquiring more equity. Hedge fund investments are typically for shorter periods of time than private equity. A hedge fund manager will typically charge a management fee (a percentage of assets under management) and a performance fee (a percentage of the gains). Notable hedge funds include Paulson & Co. and BlackRock Advisors.

Return to Private Equity Glossary

Did you know that through PrivateEquity.com we offer:

 

tags: Hedge Fund private equity, what is Hedge Fund?, Hedge Fund definition, Hedge Fund explained, Hedge Fund explanation, Hedge Fund glossary, Hedge Fund buyout, Hedge Fund finance, Hedge Fund definition, videos, Hedge Fund private equity terms, private equity glossary, venture capital, private equity definitions, Hedge Fund, define Hedge Fund

About Us


Site Sponsors
To list your brand here as a sponsor of PrivateEquity.com please email us at Clients@PrivateEquity.com