A hedge fund is defined as a form of investment fund which is aggressive and uses highly developed investment strategies to make as high profits as possible. Given the fact that a huge amount of money is required to institute a hedge fund, the fund is usually organized in form of private partnerships. The fund is not limited regarding the duration of investments in which it can be involved. Moreover, hedge funds can invest in virtually any available opportunity in the market provided there is a possibility of making returns. Hedge funds are set up to ensure reduced risks and positive returns whether the market is in a boom or recession period. Before investors are allowed to invest in hedge funds, their financial position is evaluated to ensure it meets the requirements. It is important to note that due to the requirement that investors have to keep their money in the hedge fund for at least one year, hedge funds are in many cases liquid. The number of hedge funds has been increasing at a high rate in recent years. Hedge funds have various characteristics that can be used to identify them. To begin with, hedge funds aim at ensuring that the capital of investors earns returns at all times. In this regard, ensuring the presence of returns as opposed to looking at the quantity of the returns is the emphasis of hedge funds. Moreover, the priority of hedge funds is to preserve the capital of investors. On the same note, it should be noted that to reduce the risk associated with any investment opportunity, hedge funds use several strategies. Consequently, hedge funds have flexible investment plans taking advantage of any opportunity that has returns and the lowest risks. Hedge funds require a lot of money to invest and if any mistake is made a lot of money will be lost. As a result, the fund requires absolute dexterity in management and decision-making. Consequently, hedge funds are characterized by a highly qualified and experienced management team that makes investment decisions. This team usually makes investments in areas where they have a competitive advantage to enhance the probability of making returns. Additionally, investors themselves have to be accredited to ensure that they have experience in this kind of investment before being allowed to invest. Concisely, the hedge fund is a fund of experienced and qualified people. Hedge funds are tailored to secure investors against market downturns, and they deploy the best brains in the market to achieve this. Hedge funds utilize many strategies to ensure maximum returns. However, the strategies change very fast, and categorizing them is a problem. Nevertheless, some major strategies can be identified. The first one is the global macro strategy. Hedge funds utilizing this strategy usually base their decisions on changes in government policies that lead to fluctuations in interest rates. Consequently, these hedge funds mostly invest in bonds or financial markets and equities. The strategy takes advantage of flexibility in macro events and invests in diverse markets thus making risk-adjusted returns. Regarding global macro strategies, there are two options that investors can choose from. Firstly, investors may come