Hedge Fund

A pooled investment vehicle, typically structured as a limited partnership, that employs a wide range of strategies including leverage, short selling, derivatives, and arbitrage to generate returns. Alfred Winslow Jones launched the first hedge fund in 1949, pairing long stock picks with short positions to "hedge" market risk. Today the industry manages trillions of dollars, with firms like Bridgewater Associates, Citadel, and Renaissance Technologies among the most prominent. Access is generally restricted to accredited or institutional investors.