Hedge funds are alternative investments using pooled funds that employ different strategies to earn active return for their investors. It is important to note that hedge funds are generally only accessible to accredited investors. One aspect that has set the hedge fund industry apart is the fact that hedge funds face less regulation than mutual funds and other investment vehicles.

Key Characteristics:

-They’re only open to “accredited” or qualified investors

-They offer wider investment latitude than other funds

-Fee structure