The Olympian- Both hedge funds and private equity funds are pooled investment vehicles designed to serve high- net-worth and institutional investors.
Hedge funds, which may be concentrated portfolios of both private and public securities, can invest borrowed assets.
They may hold short positions, which allow the funds to profit when a security declines in value, as well as traditional long positions.
Hedge funds often seek to generate a specific absolute return based on the level of risk they assume, regardless of the market environment, a key point of difference from most mutual funds.
