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hedge fund

hedge fund

86 6.3
A company that manages money for rich people and uses risky methods to try to make big profits
  • noun
  • /hɛdʒ fʌnd/
  • Specialized
translation icon : fondo de cobertura
  • After reviewing several options, she decided to place her money in a reputable hedge fund.
  • a hedge fund manager
  • hedge fund assets
  • a hedge fund adviser

I was running a hedge fund in San Francisco at the time.

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Examples

  • Many wealthy investors choose to invest in a hedge fund for higher returns.

  • As these hedge funds come in, then they drive adoption.

  • Do you think it's possible that these hedge funds are thinking the same way?

  • I was running a hedge fund in San Francisco at the time.

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

  • Most investors have their impressions of hedge funds formed by stories in the lay press.

    Academic text (2015)
  • In East Asia, governments still blame hedge funds for their supposed role in the 1997-98 financial crisis.

    Academic text (2007)
  • Hedge fund manager John Paulson made $12 billion betting against the mortgage market.

  • His family owns a hedge fund worth 800 million and it's considering investing in Vance's expansion.

  • The hedge fund employs a variety of strategies to minimize risk in volatile markets.

Synonyms

fund
vshedge fund
  • Specialized
458 3.1

Money that many people put together to buy stocks or bonds

serves wealthy clients and pursues advanced high risk strategies for bigger returns
investment fund
vshedge fund
  • Specialized
6 3.4

A pool of money many people manage together to buy stocks and bonds to make money

targets wealthy investors and uses advanced high risk strategies for higher returns

How Risky

venture capital
  • Specialized
32 4.6
hedge fund
  • Specialized
86 6.3
mutual fund
  • Specialized
82 3.5

Surface Forms

hedge fund singular
hedge funds plural

Morphology

hedge + fund

The compound is partly analyzable: 'hedge' (offset risk) combined with 'fund' (pooled investment) suggests a fund related to hedging activities, so a learner who knows both words will get a basic sense. However, the full financial nuance — private vehicles for wealthy investors using complex or sometimes high-risk strategies rather than simply 'hedging' — is not fully predictable from the constituents, making the term only partially transparent.

Etymology

Hedge fund comes from the word hedge, a fence that protects a garden, and fund, a pool of money. Early funds tried to 'hedge', that is, to protect investors by making opposite bets, so the name stuck. Today hedge fund means a pool of money for wealthy investors that often uses risky ways to try to make high returns.