A specific type of pooled investment funds that is less constrained term of regulation and investment strategies. These funds, often reserved to certain type of investors, aim for higher returns by employing more complex trading techniques or by investing in more exoctic or less liquid assets.
While some hedge fund managers have gained infamous reputations, after some remarkable operations on financial markets the vast majority of them manage money in more mainstream ways. There are more than 10’000 funds in existence (source eVestment, 2017) managing more than $3 Trillion. A lot of hedge funds also disappear each year (more than 14’000 since 1998).