Hedge funds are actively managed investment funds that exploit opportunities in different asset classes. The goal of hedge funds is to generate returns regardless of the financial market situation, for example, even when markets are trending downwards or sideways. Compared to traditional investment funds, they sometimes use different instruments, such as short selling or options. Due to their complexity and the comparatively high investment volumes required, direct investments in hedge funds are only partially suitable for private investors. It is easier to access the asset class as part of the portfolio within an asset management mandate. Learn more about the peculiarities, opportunities and risks of hedge funds in our article “Diversifying your portfolio with hedge funds”.