Glossary

From A to Z all the terms you need to skip the jargon and get started!

Hedge fund

A hedge fund is a type of investment fund that pools money from wealthy individuals and institutional investors to make sophisticated, high-risk bets in the financial markets. 🎲

Hedge funds use various strategies, like short selling, leverage, and derivatives, to maximise returns and hedge against potential market downturns.

An example of a hedge fund is Bridgewater Associates, founded by Ray Dalio, one of the world's largest and most successful hedge funds. 🌎

Fun fact: The first hedge fund was created in 1949 by Alfred Winslow Jones 🕰️ who combined long and short stock positions to reduce market risk, a strategy that earned him impressive returns and laid the groundwork for modern hedge funds.