What is a 'hedge fund'? Definition & meaning

More terms

Rate of Return

Profit on an investment, expressed as a percentage of the investment.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Zero coupon bonds

What is a zero coupon bond?

Yield

Income from an investment as a percentage of its current price.

Total Return

This is the measurement of a fund’s performance in a specific period.

Hedge Fund