Hedge fund

A hedge fund is an investment pool managed by active fund managers that use a range of investment strategies aiming for high returns. Unlike mutual funds, hedge funds can invest in a mix of assets, including stocks, bonds, derivatives and real estate. They often use leverage and short-selling investing techniques. Wealthy investors and financial institutions often use hedge fund managers hoping to generate profits regardless of whether share markets are going up or down - that is, whether it’s a bear market or a bull market.