Hedge Funds are private capital reserves for investment with the flexibility to buy or sell a wide range of assets. It is basically a name for an investment company. The purpose of a hedge fund is to maximize investor returns and reduce risk, hence the word ‘hedge’. It aims to benefit from market failures rather than relying purely on economic growth for performance. These funds are very illiquid, in particular by limitations on redemption and ceilings for withdrawal.Key strategies of hedge funds
There is no universal formula, and the types of investment strategies pursued by individual Hedge Funds are extremely diverse.