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Hedge Fund
Investment vehicles, much like mutual funds, which are generally structured as partnerships wherein the number of investors is limited and whose general partner has made a substantial personal investment in the fund. The offering memorandum of most Hedge Funds allows them to use a combination of sophisticated investment strategies such as taking both long and short positions, using leverage and derivatives, and investing in many markets. The funds usually require investors to make a large fixed investment (i.e. $100,000) and only allows withdrawals at certain times of the year. Since Hedge Funds move billions of dollars in and out of markets quickly, they can have a significant impact on the day-to-day trading developments in the stock, bond, and futures markets.
Hedge Fund
A mutual fund involving speculative investing in stocks and options.

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