Meaning of the word "hedge fund" in English

What does "hedge fund" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

hedge fund

US /ˈhedʒ ˌfʌnd/
UK /ˈhedʒ ˌfʌnd/
"hedge fund" picture

Noun

1.

a limited partnership of investors that uses high-risk methods, such as investing with borrowed money, in hopes of realizing large capital gains

Example:
He works for a prominent hedge fund in New York.
The hedge fund suffered significant losses last quarter.
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