# Hedge Fund

*Saving & Investing — Finicade finance glossary*

A lightly regulated fund that chases returns with tools ordinary funds avoid — short selling, leverage, derivatives. It charges high fees (classically '2 and 20') and is open mostly to wealthy or institutional investors.

**Also known as:** hedge funds, mutual vs hedge funds

**Related terms:** [Private Equity](https://finicade.com/glossary/private-equity), [Leverage](https://finicade.com/glossary/leverage), [Short Selling](https://finicade.com/glossary/short-selling)

**Taught in:** Charter Climb — Alternative Investments

Source: https://finicade.com/glossary/hedge-fund