Recent Examples of hedge fund from the Web
Among those applying the pressure: hedge fund boss Nelson Peltz, who owns almost 71 million shares that have lost nearly $180 million in value this month.
The businessman purchased the club along with Sino-Europe Sports earlier this year, but his partners backed out and Mr. Li completed the €740m purchase thanks to a loan from U.S. hedge fund Elliott Management.
One of the hedge funds lost $13.8 million while Hunt and his partners were paid millions of dollars in management fees, according to the suit.
Many wealthy Americans hedge fund managers, doctors, lawyers and consultants will get a sizable discount on their taxes.
Five of Connecticut’s seven billionaires are hedge fund operators.
Cincinnati native Sara Eisen was interviewing Nelson Peltz, the hedge fund CEO who waged a bitter and ultimately losing battle to win a seat on P&G's board.
How Ray Dalio built the world’s biggest hedge fund (by Ray Dalio) • Drones could start delivering blood samples.
In March, Brigade won firm of the year at the Absolute Return Awards, which honors the investment world’s best-performing hedge funds.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'hedge fund.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of hedge fund
Financial Definition of HEDGE FUND
What It Is
A hedge fund is an investment structure designed to allow management of a private, unregistered portfolio of assets.
How It Works
The original concept of a hedge fund was to offer plays against the market using short selling, futures, and derivatives. Today, hedge funds follow any number of strategies and cannot be considered a homogenous asset class.
Hedge funds (as an asset class) use various strategies, including leverage, hedging, and macroeconomic bets on commodities, currencies, and interest rates. The common denominator of hedge funds is not their investment strategy but their search for absolute returns (as opposed to relative returns). Absolute return strategies focus on generating a positive return on investment (ROI) regardless of the direction of the financial markets.
Hedge fund managers seek freedom to achieve high absolute returns and wish to be rewarded for their performance. The compensation arrangement for the manager typically specifies considerable profit participation. The specific legal organization of hedge funds and the considerable fee structure expected by fund managers are probably the only uniform characteristics of hedge funds.
Only accredited investors are eligible to invest in hedge funds. The term accredited investor includes wealthy individuals and organizations like corporations, endowments, or pension funds. Accredited investors invest in hedge funds because they are looking for investments with negative correlation to the broad market.
Why It Matters
Because they operate outside the realm of the public markets and are lightly regulated, hedge funds have been declared "off limits" to most individual investors. Some say the lack of oversight paired with the high-risk, high-return strategies employed by most hedge funds have resulted in some of the world's most catastrophic financial events, including the failure of Long-Term Capital Management in 1998 and the collapse of two Bear Stearns hedge funds in 2007.
That being said, all investors, regardless of experience and sophistication, need to perform extensive due diligence before investing in any hedge fund. Before investing in a hedge fund, an investor needs to consider the correlation of the fund strategy to the rest of the investor’s portfolio, the reputation and success rate of the fund manager, the use of leverage, as well as the fee schedule.
HEDGE FUND Defined for English Language Learners
Definition of hedge fund for English Language Learners
finance : a group of investors who take financial risks together in order to try to earn a lot of money
Seen and Heard
What made you want to look up hedge fund? Please tell us where you read or heard it (including the quote, if possible).