HIGH-WATER MARK
High-Water Mark identifies the highest portfolio value before a drawdown.
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A hedge fund is an investment fund that employs various strategies to generate high returns, often using leverage, derivatives, and short-selling. In trading, hedge funds are known for their active management and ability to take both long and short positions in a variety of asset classes, including stocks, bonds, and commodities. They cater to accredited investors and typically require a higher minimum investment. Hedge funds aim to achieve absolute returns, often outperforming traditional market benchmarks while managing risk.