esÂ·trange. tr.v. esÂ·tranged, esÂ·trangÂ·ing, esÂ·trangÂ·es. 1. To make hostile, unsympathetic, or indifferent; alienate: The months of bickering estranged her from her family. 2.
Hedge fund. A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.
The name hedge fund came into being because the aim of these vehicles was to make money regardless of whether the market climbed higher or declined. This was made possible because the managers could hedge themselves by going long or short stocks (shorting is a way to make money when a stock drops).