Hacker News Reader

I mean, this link literally says he coined the term to mean “a fund that is hedged against market risk” so I have no idea what you two are even arguing? A hedge fund is a fund that hedges against volatility and that is always what the name has implied. So my comment is right and you two are wrong even by your own sources.

View on HN

"hedged fund" implies that the fund itself is hedged. It is the original and correct term (hence the link).

"hedge fund" implies that the fund IS a hedge (presumably against other assets one might own). Except that in and of itself the fund cannot hedge you without knowing what you own.

Nowadays, everything is called a "hedge fund" incorrectly - they should be called "hedged fund" as per the original term. They provide diversification and hopefully some return above CPI, or some well-defined risk-adjusted return.

By the way, "hedging against volatility" doesn't mean much. Most of those funds are short volatility.

Reply on news.ycombinator.com