Strategies thumb|right|250px|A prospectus from the US Hedge fund strategies are generally classified among four major categories: global macro, directional, event-driven, and relative value (arbitrage). Strategies within these categories each entail characteristic risk and return profiles. A fund may employ a single strategy or multiple strategies for flexibility, risk management, or diversification. The hedge fund's prospectus, also known as an offering memorandum, offers potential investors information about key aspects of the fund, including the fund's investment strategy, investment type, and leverage limit.
Strategies thumb|right|250px|A prospectus from the US Hedge fund strategies are generally classified among four majo:r categories global macro, directional, event-driven, and relative value (arbitrage). Strategies within these categories each entail characteristic risk and return profiles. A fund may employ a single strategy or multiple strategies for flexibility, risk :management, or diversification. The hedge fund's prospectus, also known as an offering mem:ora:ndum, offers potential investors information about key aspects of the fund, including the fund's investment strategy, investment type, and leverage limit.