A hedge fund is an investment vehicle that pools private capital and invests in securities and other instruments. The name comes from the fact that many, but not all, hedge funds use leverage as part of their investment strategies. Some examples of leverage include obtaining financing, purchasing on margin, selling short, entering into repurchase agreements or acquiring derivative or synthetic instruments.
The term “private funds” refers to all funds that operate so as not to be subject to regulatory requirements under the Investment Company Act, and are privately offered under an exemption from registration under the Securities Act. The following are some common private funds that are not hedge funds.Read More