Hedge funds are pooled investment funds that are managed by professional investment managers. They aim to provide high returns by employing a wide range of strategies, such as long/short equity, arbitrage, global macro, and event-driven investing. Unlike mutual funds, hedge funds can invest in a broader range of assets and utilize leverage to enhance returns; however, they also carry a higher level of risk. These funds often require high minimum investments and are only available to accredited investors, making them less accessible to the general public. Hedge funds are subject to less regulation than traditional funds, allowing managers greater flexibility in their investment strategies.