What is a Hedge Fund

A hedge fund is a pooled investment vehicle whereby investors participate in the purchase of investments typically securities, commodities, futures, foreign currencies, and other investment opportunities. Hedge funds will typically have an investment manager who is responsible for choosing the investments, making the investments, operating the fund, and investors. Investors will make capital contributions to the fund and will expect the investment manager to make all the investment decisions. The profits or losses are then allocated amongst the investors in proportion to their capital contributions or as otherwise agreed in the limited partnership agreement, or agreement whereby the investors make the investment.