A long/short fund that takes long and short positions in investments, typically from a specific market segment.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Vikki Velasquez is a researcher and writer ...

Hedging aims to reduce risk from market drops, interest rate hikes, or currency changes by taking offsetting positions. Speculation, by comparison, focuses on profit from price moves and catalysts but ...

Mutual funds are required to provide daily liquidity to investors. While daily liquidity in a vacuum is valuable, this requirement, in the context of hedge fund strategies, severely limits a manager’s ...

Hedge funds utilize pooled capital and sophisticated trading strategies, such as short selling and leverage, to manage market risk and pursue returns across varying economic cycles. These investment ...

A detailed analysis examines various methods to protect investments when market downturns occur. The article reviews several techniques and provides insight into how each strategy works. Investors can ...

The global hedge fund industry has reported a 12.6% annual return in 2025, marking the highest since the global financial crisis. Stock-picking strategies that bet both long and short on equity ...

Consistent market volatility has become the new normal for traders. Everything from geopolitical conflicts to erratic policy decisions to unprecedented news cycles has markets swinging in ways that ...