I ve started learning about the market but I dont know what hedge funds are. Please explain
In: 17
Hedge funds take money from wealthy investors and invest them. There are many types of funds, but in general, hedge funds have two major differences:
(1) Only rich people can invest (i.e. accredited investors and institutions).
(2) They can short. Meaning they can bet that a company/stock/market will go down and profit from that outcome.
Hedge funds typically specialize in what they will invest in or how they will invest. Whether that is a specific style (e.g. quantitative, fundamental), product (e.g. stocks, derivatives, fixed income), or sector (e.g. technology, healthcare).
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