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hedge

hedge

104 6.9
A way to reduce financial loss by taking opposite investments
  • noun
  • /hɛdʒ/
  • Specialized
translation icon : cobertura
  • In East Asia, governments still blame hedge funds for their supposed role in the 1997-98 financial crisis.
  • a hedge fund
  • a hedge fund manager
  • a hedging strategy

But just as a pure hedge, a defense mechanism.

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Examples

  • A common strategy is to employ derivatives as a hedge against potential losses.

  • I'm a market analyst for an LA based hedge fund.

  • I play around a little with hedge funds.

  • Looks like another hedge fund manager.

  • From a policy perspective, it does not matter if one hedge fund goes down.

    Academic text (2007)
  • Gold and silver can be an amazing way to diversify your savings as a hedge against inflation.

  • The nightmare scenario involves a host of hedge funds making similar bets.

    Academic text (2007)
  • When the S&P goes up, I don't make as much because my hedge works against me.

  • Beyond risk and investment philosophy, hedge funds vary significantly from mutual funds with respect to governmental regulation.

    Academic text (2015)
  • But imposing some arbitrary regulatory cap on the size of hedge funds would unjustly penalize successful firms.

    Academic text (2007)

Synonyms

protection
vshedge
  • Specialized
195 2.0

Government actions that try to keep local businesses safe from foreign competition

focuses on offsetting positions as a specific financial method
hedging
vshedge
  • Specialized
1 6.6

A way investors use to reduce the chance of losing money by making opposite investments

is the broader method term used for such arrangements

Idioms

8 6.8

To avoid losing by choosing more than one option

Very messy and untidy as if after a rough time

Compounds

hedge fund
  • Specialized
86 6.3

A company that manages money for rich people and uses risky methods to try to make big profits

A tool with sharp blades that cuts and shapes garden hedges

1 3.5

A row of privet bushes planted close together to make a living fence for a garden

8.2

A small tree often grown as a bush to make garden hedges

9.1

A plant with small pale yellow flowers that grows wild along roads and fields

A plant that lives for many years and spreads by underground stems in wet or shady places

9.9

A plant from Europe with pink or white flowers whose leaves make soap when crushed

5.8

A small brown songbird found in hedges and gardens

hedge thorn
  • South African
9.9

A South African bush with sharp forked branches and fruit like small plums often planted as a fence

A climbing wildflower with twining stems and pink or white trumpet-shaped flowers

A wild plant whose leaves smell like garlic when crushed

7.6

A small purple wild flower that grows in woods and at field edges

A wild plant with leaves that smell like garlic and can be eaten

How Protective

insurance
255 2.8
hedge
  • Specialized
104 6.9
exposure
295 3.5

Surface Forms

hedge singular
hedges plural

Etymology

The financial sense of hedge comes from the idea of a 'fence' that gives protection, so a hedge in money is a way to protect your investments like a fence protects a field.