What is a hedge fund?

A hedge fund is an investment fund open to a limited range of investors which is normally engaged in complex investment strategies and often uses leverage, multiple asset classes, and derivatives to maximize returns. The fund’s aim is to generate higher returns than traditional investments, while also hedge risk. Hedge funds are managed by professional investors who aim to deliver maximum return on investment. Hedge funds are generally offered as private investments, meaning they are not open to the general public. As a result, they are subject to a variety of laws and regulations in Virginia. Generally, hedge funds must register with the Securities and Exchange Commission (SEC) and also register as an investment advisor. Additionally, fund managers must adhere to the fiduciary duty to carry out their duties in the best interest of the investors. Hedge fund management firms must also adhere to the Virginia Fraudulent Investment Law, which provides protection for investors by allowing for civil remedies or damages when investors are victims of fraud.

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What is a hedge fund?

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