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What do hedge funds actually do? How do they make money?
Hedge funds can be distinguished by other investment entities, as they
make money out of thin air.

Hedge funds apply strategies that are different than conventional investments:
• Arbitrage trading
• Buying distressed securities
• Pump and dump
• Longshort
• Market neutral
• Global macro
Their legal entity structure is similar to Private Equity funds GeneralLimited Partnership model
Typically, they have a shortterm horizon;