system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5:What are Hedge Funds and what do they do?
gpt
It's an investment scheme. Basically a group of people all put their money into one big pot, and the hedge fund manager(s) invests that money in various things with the intent of making more money. Each person who put money into the hedge fund gets a share of the profits that is in proportion to how much they put in. They also proportionally share the risk. It is similar to a mutual fund but hedge funds generally make more high risk investments and are only open to higher level "accredited" investors.