A special, high-risk investment fund that uses complex investment strategies to achieve high returns. Hedge funds are usually accessible only to a limited number of qualified investors.
example
Die Finanzkrise wurde teilweise durch das Platzen von Spekulationsblasen im Zusammenhang mit Hedgefonds ausgelöst.
The financial crisis was triggered in part by the bursting of speculative bubbles connected with hedge funds.
Usage tips
Word structure and origin
'Hedgefonds' (hedge fund) is a loanword from English ('hedge fund'). In German, the two parts are written together as a single word.
EXAMPLE
Er hat sein Geld in einen internationalen Hedgefonds investiert.
He invested his money in an international hedge fund.
Register
This word belongs to the specialist language of finance and economics. In normal everyday life, it is only used when talking about financial topics.
EXAMPLE
In den Wirtschaftsnachrichten wurde über die Regulierung von Hedgefonds berichtet.
The business news reported on the regulation of hedge funds.
Typical collocations
Typical verbs used in connection with hedge funds are 'investieren in' (to invest in), 'spekulieren mit' (to speculate with), or 'regulieren' (to regulate). Frequently mentioned related terms are 'Risiko' (risk), 'Rendite' (return), and 'Anlagestrategie' (investment strategy).
EXAMPLE
Manche Anleger spekulieren mit Hedgefonds auf fallende Kurse.
Some investors use hedge funds to speculate on falling prices.
Compare with
near_synonym · confusable
Hedgefonds vs Fonds
fund
'der Fonds' and 'der Hedgefonds' both refer to forms of investment in which money is collected and invested. 'Fonds' is the more general term. It can refer to many ordinary investment funds, for example with stocks or bonds. 'Hedgefonds' is a special type of fund. It often uses complex strategies and is considered riskier. The words can be confused because every hedge fund is a fund, but not every fund is a hedge fund. When you are speaking generally about an investment, 'Fonds' is more natural. 'Hedgefonds' only fits when this specific and often riskier form is meant.
Hedgefonds
Herr Kaya hat im Gespräch erklärt, warum ein Hedgefonds für kleine Anleger oft zu riskant ist.
In the conversation, Mr. Kaya explained why a hedge fund is often too risky for small investors.
Fonds
Für die Altersvorsorge wählt Mehmet einen Fonds mit vielen verschiedenen Aktien.
For his retirement savings, Mehmet chooses a fund with many different stocks.