STO 0.40% $7.61 santos limited

Tizard you are misunderstanding the concept of a hedge vs a...

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    Tizard you are misunderstanding the concept of a hedge vs a hedge fund. Hedge funds invest in anything usually with leverage and may go short or long. A hedge is an investment to reduce the risk of adverse price movements in an asset. The concepts are not related.

    hedge fund

    noun

    1. an offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.


    What is a Hedge

    A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security.

 
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