Hedge Fund Industry

The hedge fund industry is built around pooled investment funds that hold liquid assets and use complex trading and risk management techniques, including short selling, leverage and derivatives, to try to improve returns and insulate them from market risk. In the United States and most other countries, hedge funds are restricted to institutional investors and high net worth individuals under the financial regulations that govern them. As of 2021 the industry held about 3.8 trillion dollars in total assets, and it has consolidated around large, established firms such as Bridgewater Associates, Citadel and Elliott Management, with fund closures currently outpacing new fund launches. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/