<P> A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets , often with complex portfolio - construction and risk - management techniques . It is administered by a professional investment management firm , and often structured as a limited partnership , limited liability company , or similar vehicle . Hedge funds are generally distinct from mutual funds , as their use of leverage is not capped by regulators , and distinct from private equity funds , as the majority of hedge funds invest in relatively liquid assets . </P>
<P> A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets , often with complex portfolio - construction and risk - management techniques . It is administered by a professional investment management firm , and often structured as a limited partnership , limited liability company , or similar vehicle . Hedge funds are generally distinct from mutual funds , as their use of leverage is not capped by regulators , and distinct from private equity funds , as the majority of hedge funds invest in relatively liquid assets . </P>
a fund that invests only in a particular industry would be a
a fund that invests only in a particular industry would be a
hedge fund
hedge fund