Hedge Funds

A Hedge fund is an investment fund using pooled capitals that employ different strategies to generate high returns for its investors. It is aimed to protect investment portfolios from market uncertainty while generating active returns. Compared to other investment vehicles and funds, such as mutual funds, hedge funds require less SEC regulations. Therefore, they are usually only accessible to accredited investors. Based on a statistical survey done by Greenwich Associates, hedge funds account for about 20% of global currency trading. Because of its high trading volume, Hedge funds have been considered as the main driver of currency transaction volume growth.