Is a big trading firm a "hedge fund" only if the stock trading strategies they use include hedging strategies? If a billion dollar AUM stock trading firm doesnt not use "hedging strategies", then what kind of firm/fund are they called? (Instead of "hedge fund"?)

"Hedge fund" became a term because of the old school Alfred Winslow Jones model, where he "hedged", and also charged a 2/20 fee structure. Over time, it turned into a way to describe a common structure for investment partnerships, where there is a pooled fund structure, and a GP/LP arrangement (and also commonly charges performance fees). These firms more often than not hedged in their strategy. This also turned into an investable asset class, grouped under alternatives. This structure comes with much less regulatory oversight (vs.

If a billion dollar AUM trading firm doesnt employ hedging strategies, then is it not considered a "hedge fund"?

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If a billion dollar AUM trading firm doesnt employ hedging strategies, then is it not considered a "hedge fund"?

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