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| Definitions by InvestorWords.com |
| What is...? |
| hedge fund A fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Since they are restricted by law to less than 100 investors, the minimum investment is typically $1million. The general partner usually receives performance-based compensation. |
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