Hedge Funds

A hedge fund is kind of like an exclusive investment club for wealthy people and big institutions that’s managed by professional investors. Unlike regular mutual funds, hedge funds can use all sorts of strategies to try to make money, like betting on stocks going up or implementing short selling tactics. They can invest in pretty much anything—stocks, bonds, currencies, or even more complex stuff like derivatives. For example, a hedge fund might bet big on tech stocks if they think they’ll soar, but also place bets that certain companies will fail, all in the same portfolio. The goal is to make high returns, but it’s risky and not open to just anyone—typically, you need to have a high net worth to invest in one. Hedge funds are elite players in the market and have their hands in almost every sector.