What is a 'hedge fund'? Definition & meaning

More terms

Income statement

A summary of a company's income and expenses over a set period of time.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Account balance

The amount of money a user has stored in a financial repository.

Bed & ISA

Understand what Bed and ISA is and how it works

Junk Bond

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

Diversification

An investment strategy in which money is put into a variety assets.

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.

Net Income (NI)

The money a firm is left with from sales after subtracting taxes and different business costs.

Volatility

A measure of how much the prices of an asset or index vary over time.

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Hedge Fund