Hedge funds are investment funds that employ a variety of strategies to earn high returns for their investors. They typically pool capital from accredited individuals or institutional investors and invest in a diverse array of assets, including stocks, bonds, commodities, and derivatives. Hedge funds are characterized by their use of leverage, short selling, and derivatives to increase potential returns and manage risk. Unlike mutual funds, hedge funds are less regulated and can take more aggressive positions in the market. They often charge performance fees in addition to management fees, incentivizing managers to achieve higher returns. Hedge funds aim to provide positive returns regardless of market conditions, utilizing strategies such as long/short equity, market neutral, event-driven, and global macro. Due to their complexity and the risks involved, hedge funds are typically suited for sophisticated investors with a higher risk tolerance.
The biopharma and life sciences hedge fund sector witnessed a notable uptick in November, with many funds experiencing positive returns. Despite some funds still striving to reach their previous peak…