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Sagot :
Hedge funds differ from open-end mutual funds in the sense that their investors cannot sell shares back to the fund at any time they desire.
What are hedge funds?
A hedge fund is a small enterprise of individual investors whose capital is managed by experienced fund managers. These managers use a number of strategies, such as borrowing cash or dealing in unconventional assets, to produce returns on investments that are higher than average. Investment in hedge funds is sometimes viewed as a dangerous alternative investment option since it typically has a high minimum expected gain or net worth requirement and frequently targets rich clientele.
By investing a component of the fund's assets in the reverse way of the fund's primary objective, the management of the fund sometimes creates a Hedge fund focus on carefully chosen assets and security pools that are poised for rewards. Record-based hedge funds are equity index investment vehicles that aim to make money from significant market fluctuations brought on by economic or social events. A worldwide or country-specific stock hedge fund may invest in profitable stocks while protecting itself against equity market declines by selling short overpriced equities or stock indexes. By utilizing price or spread inefficiencies, a relative value hedge fund looks to profit from brief variations in the prices of comparable assets. Activist private equity invests in companies and demands that they reduce expenses in order to increase their stock price.
To know more about hedge funds: https://brainly.com/question/25289448
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