What is a hedge fund?
A hedge fund is an investment vehicle that is designed to take full advantage of financial instruments, and to pursue any investment strategy in today’s markets. There is very little government oversight of the hedge fund industry. Most hedge funds are not even required to register with the Securities and Exchange Commission and can do pretty much whatever they want free of government regulation. This means that investors should be very careful in committing their money to a hedge fund – the risks could be significant, and so are the potential returns.