Free market and Hedge fund: Difference between pages

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''Economics.''
A higher risk investment fund often characterised by taking short positions as well as long positions, including speculative positions in derivatives.


An economy where resources are allocated by the market by means of the market mechanism.
Hedge funds operate in a wide range of markets, with a wide variety of strategies.
 
Many of them are highly leveraged and are typically designed for more sophisticated investors.
 
 
The 'hedge' part of their name originally suggested that they were hedged against any adverse effects from general falls or rises in markets, because of the taking of linked short and long positions by the earliest hedge funds.
 
This is no longer generally the case.  




== See also ==
== See also ==
* [[Four freedoms]]
* [[Derivative instrument]]
* [[Fully planned economy]]
* [[Fund]]
* [[Market mechanism]]
* [[Hedging]]
* [[Mixed economy]]
* [[Leveraged]]
* [[Thatcherism]]
* [[Long position]]
* [[Prime brokerage]]
* [[Short position]]
*[[Side pocket]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 06:05, 7 April 2022

A higher risk investment fund often characterised by taking short positions as well as long positions, including speculative positions in derivatives.

Hedge funds operate in a wide range of markets, with a wide variety of strategies.

Many of them are highly leveraged and are typically designed for more sophisticated investors.


The 'hedge' part of their name originally suggested that they were hedged against any adverse effects from general falls or rises in markets, because of the taking of linked short and long positions by the earliest hedge funds.

This is no longer generally the case.


See also