hedge fund

[vil]

When I read in newspaper something about "hedge fund" on the first hand I think about an "aggressively managed portfolio of investment" but on the other hand I can think about a doubtful, suspicious or fishy financial activities,
or on the third hand - about a low-grade, a poor quality or second rate undertaking.

I know that the "hedge funds" are most often set up as private investments partnerships that are open to a limited number of investors and require a very large initial minimal investment.

or hedge = Making an investment to reduce the risk of adverse price movements in an asset. An example of a "hedge" would be if you owned a stock, then sold a futures contract stating that you will sell your stock at a set price, therefore avoiding market fluctuations.

Which is more powerful hedge (n) or hedge (adj.)?

Could you help me operatively in order to avoid any misunderstanding.

I can't help laughing sometimes when I turned over the pages my old, long-suffering dictionary. Or maybe I have made a fool of myself?

[Anglika]

"Hedge" here is the verb: protect (an investor or investment) against loss by making compensating contracts or transactions.

[vil]

Hi Aglika,

Thank you for explanation. Your answer pointed to me, that in this case the meaning of the noun was more significant than the meaning of the adjective.
The verb "to hedge" is founded on the base of the noun "hedge":an act or means of preventing complete loss of a bet, an argument, an investment, or the like, with a partially counterbalancing or qualifying one.

Thank you again.