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Hedge Fund

Hedge funds are actively managed pools of investments that take higher-risk investment approaches, with the goal of maximizing returns. The minimum investment amounts for such an approach are usually very high. Hedge funds have mixed success. Although they are on the rise, they don't always perform as well as expected. Hedge fund managers often invest in wildly differing industries in effort to ensure returns even in economically challenging times. Hedge fund strategies include short-selling, derivatives, and leverage.

What Small and Midsize Businesses Need to Know About Hedge Fund

SMBs interested in this type of investment should consult with their chief financial officer (CFO) or a financial advisor to ensure they understand both the risks and chance of success. It's also worth noting that as hedge funds are subject to fewer regulations than other types of investments, they are generally only accessible to accredited investors.

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