Hedge fund
27 December 2025 (Updated 27 December 2025)
What is a hedge fund?
A hedge fund is a private investment fund that tries to make money for its investors using complex and higher-risk strategies. Hedge funds are typically used only by very wealthy investors (£500k+ net worth).
Hedge funds tend to charge high fees with typical fees being 2% yearly management fee of your total investment amount and 20% of any profits.
Examples of hedge funds include Bridgewater Associates and Citadel.
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Investing