In today's financial markets, hedge funds have sparked the interest of many institutions looking for enhanced returns on their money. Despite all the attention hedge funds have attracted, however, there still exists a great deal of misunderstanding among investors about what they are and how they work. Hedge fund has become a catchall phrase that is often used incorrectly, implying a homogeneous investment class, whereas, in reality, the term describes a wide variety of investment vehicles.
The only thing that most hedge funds have in common...
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