Hedge funds are alternative investment options where investors pool funds together while employing various techniques to earn a return. The only entities that can access hedge funds are accredited or institutional investors.
The classification of hedge funds depends on many variables. First is by fund size (money under management). There is also classification based on industry focus such as health care, technology, etcetera. Hedge funds can also be classified in terms of asset class like fixed income, equities, or private deals. They can be structured as a single manager or multi-manager fund model. Finally, hedge funds can be classified by investment strategies like investment-grade debt, long/short equity, or merger arbitrage.
