Funds

Hedge Fund

Private pooled investment vehicles using flexible strategies, typically for accredited investors.

In depth

Hedge funds use leverage, short selling, derivatives, and concentrated positions. Strategies include long/short equity, global macro, event-driven, quant, and credit. Fees historically 2% management + 20% performance ("2 and 20"). Performance has been mixed — only top-quartile funds consistently beat indices.

Frequently asked about Hedge Fund

What is Hedge Fund?

Private pooled investment vehicles using flexible strategies, typically for accredited investors. Hedge funds use leverage, short selling, derivatives, and concentrated positions. Strategies include long/short equity, global macro, event-driven, quant, and credit. Fees historically 2% management + 20% performance ("2 and 20"). Performance has been mixed — only top-quartile funds consistently beat indices.

Why does Hedge Fund matter for investors?

In funds, Hedge Fund is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Hedge Fund used in practice?

Hedge funds use leverage, short selling, derivatives, and concentrated positions. Strategies include long/short equity, global macro, event-driven, quant, and credit.

Recent news mentioning Hedge Fund

Seeking Alpha rates Merck 'Strong Buy' on Terns deal and Keytruda patent hedge

The Quick Take * Seeking Alpha assigns Merck a 'Strong Buy' rating citing Terns Pharmaceuticals acquisition as a key catalyst * Keytruda patent loss is flagged as a major risk; oncology portfolio expansion seen as the primary counter-strategy * Analyst view: Merck's long-term revenue growth hinges on pipeline diversification beyond Keytruda's ~$25B annual revenue * Next watch: Integration of Terns assets and pipeline readouts will be critical to validating the bull thesis * Asia angle: Key

May 5, 2026

Related terms

Private Equity

Investment in private (non-publicly-traded) companies, often via leveraged buyouts.

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