Hedge funds are a portfolio of various investments that are managed aggressively, generally due to the strategies used. The main goal of such investments is to get higher returns compared to other investments. So basically Hedge Funds are privately owned companies that pool money from the investors to reinvest them in group of financial instruments to achieve higher returns.Hedge funds are absolute return fund that invest within the financial markets in stocks, bonds, commodities, currencies, derivatives, or they may apply non-traditional portfolio management techniques like short selling, leveraging, arbitrage, swaps, etc.Initially conceived in the US (1949), hedge funds flourished in the late eighties, and now form an integral part of institutional and private client portfolios.

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