Definition of “hedge fund” - English Dictionary

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“hedge fund” in Business English

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hedge fundnoun [ C ]


an investment fund that trades large amounts of shares, currencies, etc. to take advantage of both rising and falling prices, for example by shorting (= borrowing shares, etc., selling them, and buying them back at a lower price):

Managers of the first hedge funds invented ways to make money no matter which way the stock market was moving.
The Senate Judiciary Committee met yesterday to discuss the growing problem of hedge funds accused of wrongdoing in the marketplace.

(Definition of “hedge fund” from the Cambridge Business English Dictionary © Cambridge University Press)