Financial Poise

Hedge Fund

  • October 17, 2021
« Back to Glossary

A Hedge Fund, at the most fundamental level, is a private investment pool for wealthy, financially sophisticated investors, historically organized as partnerships, with the general partner (or managing member of an LLC) – the hedge fund manager – managing the fund’s portfolio and making investment decisions. In concept, they are intended to hedge against risk, however, they are known for a “high risk, high reward” approach. Hedge fund managers typically seek a specific range of performance, regardless of market trends. They do this by using sophisticated strategies and techniques.