What is 'Hedge Fund'? | Freetrade Dictionary

Investment funds that are often associated with riskier and shorter-term trading strategies.

More terms

Money laundering

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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Investment Return

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

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Yield

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

Hypothesis Testing

A mathematical test used to determine whether a claim is true or false.

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Hedge Fund