hedge fund

2 antonyms for hedge fund — opposites grouped by meaning.

Noun — A pooled investment fund, usually open only to institutions and wealthy individuals, whose managers may use a very wide range of strategies — including borrowing, derivatives and betting on prices falling — and which typically faces lighter regulation and fewer disclosure requirements than funds sold to the general public.

Antonyms

index fund mutual fund

How to use hedge fund

The word patterns that sound natural to a native speaker.

hedge fund manager launch a hedge fund hedge fund industry activist hedge fund

Neutral in financial writing; in general journalism it often carries a connotation of secrecy or aggressive dealing.

Etymology

From hedge in the financial sense of taking an offsetting position to limit losses, plus fund.

Full origin of hedge fund →

Frequently asked questions

What is the difference between a hedge fund and a mutual fund?

A mutual fund is sold to the general public, publishes its holdings and its price regularly, and is limited in how far it may borrow or bet against the market. A hedge fund is normally restricted to professional and wealthy investors, discloses far less, and has much wider freedom in what it may do with the money. Hedge funds also commonly charge a share of profits on top of a management fee, which mutual funds do not.

Why is it called a hedge fund if it does not always hedge?

The name comes from an early structure that offset holdings against one another to reduce exposure to the market as a whole — a hedge. The label stuck and is now applied to the whole category, including funds whose strategies involve no hedging at all.

Who can put money into a hedge fund?

Access is normally limited by law to investors who meet defined wealth, income or professional criteria, and minimum investments are often large. The exact rules depend on the country in which the fund is offered.

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