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What is a Hedge Fund?

If you watch financial media with any regularity, you’ve heard the term “hedge fund” before. Headed by a manager (typically a registered investment advisor), these funds are for eligible qualified investors to pool their money and invest. They have an extremely high barrier to entry and don’t play by the same rules as other managed investment products. That said, they also carry a tremendous level of risk.
The big draw of hedge funds is their highly leveraged nature, which leads to significant return on investment (ROI). These funds are where high-net-worth individuals park their wealth and let it work for …read more […]