Day48. Financial term | Hedge funds
@Tiger_Academy:
Hedge funds are specialized investment funds that utilize various investment strategies to help investors manage risks and achieve profits. These funds can invest in a wide range of markets, including stocks, bonds, and commodities, aiming to generate profits not solely dependent on market fluctuations.In simple terms, hedge funds are a unique type of investment fund that employs diversified investment strategies to manage risks and generate returns.Here's an example:Let's consider a hedge fund with an initial capital of $1,000,000. It allocates funds in the following proportions: 40% for the stock market, 30% for the bond market, and 30% for the commodity market.In the stock market, the fund invests $400,000. After one year, the stock investment yields a 20% return, amounting to $80,000.I