![Crypto Terms Glossary: What is Hedge Fund? Crypto Terms Glossary: What is Hedge Fund?](/img/121/686/what-is-hedge-fund-sm.webp)
A hedge fund is a pooled investment fund that uses complex combinations of investment strategies and techniques to increase its performance. Hedge funds have a relatively low barrier for entry compared to other types of funds, but are still typically reserved for accredited institutional investors and high-net-worth individuals (HNWIs). Hedge funds can be expensive to gain entry to compared to traditional investments, but tend to exhibit higher returns than market averages globally.