What is a Hedge Fund?


What is a Hedge Fund?

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Hedge Funds, like mutual funds, are pools of investments.  They can invest in anything, private corporations, public corporations, real estate, currencies, the list goes on.  Only Accredited Investors [those who have at least $200,000 of annual income ($300,000 for a married couple) for the last three years or have an investable net worth (outside any equity in your primary residence) over $1 million] and institutional investors are able to invest in them.  They often use leverage which increases the risk level.

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InvestingErica Hartwick