hedge fund

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Exceptionally risky and largely unregulated US investment partnership which employs aggressive leverage to multiply gains (or losses) from fluctuations in the prices of financial instruments (bonds, notes, securities). Hedge funds are restricted under US law to less than 100 investors who typically put in a minimum of one million dollars each.

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I was nervous when my manager began talking with me about a hedge fund because I knew how risky they were.
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The hedge fund market thrived with the new players that were able to make strategic guesses backed by legitimate analysis.
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If you want to risk in the market but don't want to have as high of volatility putting your money in a hedge fund can make things steadier.
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