What is a 'hedge fund'? Definition & meaning

More terms

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Know Your Customer (KYC)

A legal requirement for financial firms to understand exactly who their customers are. Used to prevent money laundering and terrorist financing.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

Yield curve

A graphical representation of interest rates over time

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Hedge Fund