Hedge funds
0412-en RE430 Financial Market Law As of 11.07.2026
Hedge funds offer the opportunity for higher returns but also entail a correspondingly high degree of risk, as these instruments are not as transparent for the investor as traditional funds. Despite their name (to hedge means to safeguard), hedging transactions are by no means the main purpose of hedge funds. These funds are characterised by transactions which are prohibited for traditional investment funds. These include short selling securities, raw materials or foreign currency, arbitrage, stock market transactions on credit and the extensive use of derivatives. Private investors usually invest in umbrella hedge funds to improve risk distribution.
Deutsch
Hedge Funds 0412-de
Hedge Funds bieten die Chance auf eine hohe Rendite, bergen aber auch ein entsprechend hohes Risiko, weil diese Anlageinstrumente für den Investor nicht so transparent sind wie herkömmliche Fonds. Trotz des Namens (to hedge bedeutet: sich absichern) sind Absicherungsgeschäfte keineswegs der Hauptzweck der Hedge Funds. Diese Fonds zeichnen sich durch Transaktionen aus, die gewöhnlichen Anlagefonds nicht erlaubt sind. Dazu gehören Leerverkäufe von Wertpapieren, Rohwaren oder Devisen, Arbitrage, Börsengeschäfte auf Kredit sowie der weitreichende Einsatz von Derivaten. Um das Risiko besser zu verteilen, investieren Privatanleger in der Regel in Hedge-Dachfonds.
Suggested citation
Hedge funds (0412-en), in: LAWPEDIA®-Glossar, provided by LAWCONSULT AG, www.lawconsult.ch/lawpedia/en/hedge-funds, as of: 11.07.2026 [accessed on …].
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