hedge fund Meaning in the Cambridge English Dictionary Cambridge dictionaries logo

Meaning of “hedge fund” in the English Dictionary

"hedge fund" in Business English

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hedge fundnoun [C]

uk   us   FINANCE, STOCK MARKET
an investmentfund that ​trades large ​amounts of ​shares, ​currencies, etc. to take ​advantage of both ​rising and ​fallingprices, for ​example by shorting (= ​borrowingshares, etc., ​selling them, and ​buying them back at a ​lowerprice): Managers of the first ​hedgefundsinvented ways to make ​money no matter which way the ​stockmarket was ​moving. The Senate Judiciary Committee ​met yesterday to discuss the ​growing problem of ​hedgefundsaccused of ​wrongdoing in the ​marketplace. hedgefundinvestors/​managers
(Definition of hedge fund from the Cambridge Business English Dictionary © Cambridge University Press)
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