A hedge fund is an alternative investment vehicle available primarily to sophisticated investors, such as institutions and individuals with significant assets. Unlike mutual funds, hedge funds are not subject to some of the regulations that are designed to protect investors and typically have more leeway in their investment strategies, including short selling, leveraging, and using derivatives. Hedge funds aim for high returns and can be riskier than traditional investment funds.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
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