What Is Hedge fund?

A hedge fund is a pooled investment vehicle that employs sophisticated strategies to generate returns, often including leveraged positions, derivatives, short-selling and algorithmic trading methods. Hedge funds are major practitioners of high-frequency trading, factor investing and systematic quantitative analysis approaches that rely on data analysis and machine learning models. They are distinguished from mutual funds by their ability to use leverage, take short positions and pursue market neutral strategies.

See also

• Algorithmic trading

• Quantitative analysis

• Trading strategy

• Market neutral strategy

• High-frequency trading

• Alpha generation platform

• Factor investing