What is a Hedge Fund?

A Hedge Fund is a type of fund which typically has a broad investment mandate, offering un-correlated returns and focused on delivering alpha to investors. They only accept money from accredited investors as those investors are deemed suitable to handle the potential investment risks. Popular hedge fund strategies include Global Macro (taking advantage of broad market movements), Long/Short Equity (a relative value trade taken by going long underpriced and short overpriced stocks with similar characteristics) and Event Driven (taking advantage of potential M&A activity).