Seeking Alpha – In general, a hedge fund is defined as an investment fund that can undertake a wider range of investment and trading activities than other funds, but which is generally only open to certain types of investors.
These investors are typically institutions, such as pension funds, university endowments and foundations, or high-net-worth individuals, who are considered to have the knowledge or resources to understand the nature of the funds (source: Wikipedia). As a class, hedge funds invest in a diverse range of assets, but they most commonly trade liquid securities on public markets. These funds typically employ a wide range of strategies, and make use of techniques such as short selling and leverage.
