Hedge funds are lightly regulated as products because their investors are presumed sophisticated, but the fund itself must still be recognised or registered in its domicile, appoint an administrator and auditor, and disclose its terms in an offering memorandum. Strategies range from equity long/short and macro to quantitative, credit and digital assets.
The defining features relative to a mutual fund are the investor restriction, the performance fee, the liquidity terms and the strategy freedom.