Hedge Fund
/ˈhɛdʒ ˌfʌnd/noun
An investment fund that uses varied strategies, including hedging and leverage, to pursue returns for its investors.
Did you know?The modern financial term was popularized in 1949 by Alfred Winslow Jones, whose fund attempted to reduce risk by combining long and short stock positions.
Etymological Timeline
Proto-Indo-European
PIE
*kagh-
“To enclose or catch; a proposed ancestor connected with words for barriers and enclosures.”
Old English
Old English
hecg
“A fence or boundary made from intertwined shrubs.”
Middle English
Middle English
hegge
“A hedge or planted enclosure.”
Latin
Latin
fundus
“The bottom, base, or foundation of something; later, land or an estate.”
17th Century
English
fund
“A sum of money set aside for a particular purpose, from Latin fundus through French and English financial usage.”
1949
English
hedge fund
“A private investment fund using hedging strategies—such as offsetting positions—to manage risk while seeking returns.”