What are hedge funds?

Hedge funds , known as  Hedge Funds,  are funds in which the main strategy is to protect assets from financial losses, while seeking high returns.

These funds are formed privately, on a derivatives market, and are invested by selected investors.

To obtain a higher profitability than the market average, more daring strategies are adopted, which require a deep knowledge of their managing partners.

The strategies adopted by this type of fund differ from traditional funds, which characterizes this investment as high risk.

How the hedge fund works

The amounts invested in funds of  hedge  are managed by their managers, who seek to invest capital so diversified and generally where the yield is high.

Despite having as a main strategy the protection of financial losses, in this type of fund, the managers look for investments in assets with higher risk, so that the return is the maximum possible.

The main characteristic   of  hedge funds  comes from their versatility, since assets are acquired in a diversified way and have returns in different ways.

This is due to the fact that these funds are less regulated, in addition to being privately formed for more sophisticated investors.