We define a hedge fund as a couple of guys with a bright idea and a rented office in Mayfair.

The Oxford English Dictionary says it is an “offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.”

That neglects to mention how much they charge, or that they talk a lot about alpha — even leveraged alpha — while doing a lot of vega.

Hedge funds hang out with

See also