A “hedge fund” is an investment fund that can give return in short term and long term also. Buying underrated bonds, securities or any other trade options where the prediction shows the benefit without any risk. The primary goal of the majority hedge fund is to reduce unpredictability and risk while trying to conserve capital and bring positive returns under any market conditions. Well, the Hedge fund strategies differ enormously.

There are just about 14 different investment strategies used by hedge-funds, each offers different extent of risks and returns. Let’s see a macro hedge fund for instance – investing in bond markets, stocks and other investment prospects such as currency trading, are only in expects of gaining profit on significant moves, in worldwide interest rates and the economic policy. Macro hedge fund is more unpredictable but possibly faster growing than other hedge funds like distressed-securities that acquire the equity or company debt to exit from financial distress.

Hedge fund investment is only available for the investor who has a great amount of money to investment. An investor must have at least $1,000,000 in net value or annual income $200,000 (USD). Hedge fund investment shows the way of professional money management and also gets involved in some other alternative financial markets.

If we go a bit specific then we will find more and more usage of hedge funds. Just look into the New York hedge fund strategy, where pension holders are also getting offers from Hedge fund Consultants. As per the news of Bloomberg in New York City there are many pension holders (Pension funds for firefighters, police officers and civil employees) looking for secured investment and also getting proposals from hedge fund advisors. Well, there is no history about pension fund that was invested in hedge fund. Sorry, I don’t want to comment on that.

Any way according to recent statistics, hedge funds are not recovering losses during the recession. Hedge funds got great gains in the year of 2009, but investors are not deluging back to the extent that finance managers expected. There is still a small loss from hedge funds in the 1^st quarter of 2010 as said by Credit Suisse.