Difference Between Hedge Funds & Private Equity

Question

Accepted Answer

Hedge funds are pools of capital managed aggressively while private equity invests in private companies with the aim of improving their operations.

Hedge funds are more actively managed and use a variety of investment strategies to generate high returns.
Private equity firms invest in private companies with the aim of improving their operations and then selling them for a profit.
Hedge funds are typically open to a wider range of investors, while private equity is usually only available to accredited investors.
Hedge funds are subject to less regulation than private equity firms.
Examples of hedge funds include Bridgewater Associates and Renaissance Technologies, while examples of private equity firms include Blackstone and KKR.

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