What is a 'hedge fund'? Definition & meaning

More terms

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Ponzi Scheme

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

Investment Return

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

Bed & ISA

Understand what Bed and ISA is and how it works

Total Return

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

Depository

We look at what is a depository and what role they play in keeping markets work.

Value stocks

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

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

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Hedge Fund