ETF Trends – A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade futures and options, and invest in almost any asset class or market where it sees opportunities with a goal of delivering absolute returns while minimizing risk and volatility and preserving capital.
The first hedge fund was launched in 1949 or 64 years ago offering a long/short strategy. Hedge funds operate in 8 broad strategies: long/short, event driven, multi-strategy, global macro, CTA, distressed, and equity market neutral.