BusinessAugust 18, 2026

unhedged

un-HEDJD

Definition

Describes an investment position or portfolio that lacks protective measures to reduce or offset the risk of adverse price movements.

Etymology

The word combines the prefix 'un-' (meaning not) with 'hedge', which derives from the Old English 'hecg' (a fence or boundary); in finance, it metaphorically means protecting an investment behind a 'fence' of secondary positions.

In the news

The article uses the term to describe Norway's sovereign wealth fund, which, due to its passive indexing strategy and government mandate, has limited ability to protect its assets against market crashes.

Norway's Government Pension Fund Global Gains 9.4% in First Half

Read the full article ↗

Pension Pulse blog

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