What is a hedge fund?

By Deputy editor Tim Bennett May 10, 2012

Tim Bennett

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Tim Bennett looks at the secretive world of hedge funds, and explains what they are and how they aim to make money.

Watch all of Tim's video tutorials here

Comments (3)

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  • 1. moneyweekfan

    (14 May 2012, 10:15AM)  Complain about this comment

    Can we PLEASE have transcripts of these videos so that your deaf viewers can have an equal chance to consume this interesting and useful information!?

  • 2. Beta adjusted

    (07 August 2012, 05:01PM)  Complain about this comment

    The way I've always tried to describe it is as anything that is not a main-stream investment vehicle i.e. pension fund, investment trust, unit trust, or insurance investment fund. Thats fairly accurate. Also, for the last 5 years or so, many hedge funds have had pension fund investors so they aren't so secrative anymore; in the UK secrecy has been enforced however, as the marketing of investment products has been highly regulated. Also, not all hedge-funds can use derivatives; they are bound by their investment mandate and usually subject to gruelling due diligence, particularly if they have established fund-of-funds as investors. In my last position, our seed investor had access to our live positions and this is not uncommon now. However, things vary widely in the industry - the term 'hedge fund' is far too broad and I suspect its use will diminish.

  • 3. Sage of Aldershot

    (29 April 2013, 09:46AM)  Complain about this comment

    V helpful, thanks Tim. The one thing you did not mention, surprisingly, was 'hedging'. Maybe later? elsewhere?

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