It is still uncertain which is the earliest hedge fund. During the great bull market in the United States in the 1920s, there were countless such investment tools specifically for the rich. The most famous is the Graham-NewmanPartnership Fund founded by BenjaminGraham and JerryNewman. In 2006, WarrenBuffett declared in a letter to MuseumofAmericanFinance that the funds in the 1920s were the earliest known hedge funds, but other funds may appear earlier. In the economic recession of 1969-70 and the stock market crash of 1973- 1974, many early funds suffered heavy losses and closed down one after another. In 1970s, hedge funds usually focused on one strategy, and most fund managers adopted the long-short stock model.

During the economic recession in 1970s, hedge funds were once ignored. It was not until the late 1980s that several successful funds were reported in the media before they returned to people's sight. The big bull market in the 1990s created a batch of new wealth, and hedge funds blossomed everywhere. Traders and investors pay more attention to hedge funds because they emphasize the income distribution mode with consistent interests and the investment mode of "outperforming the market". In the next decade, the investment strategies of hedge funds will emerge one after another, including credit arbitrage, junk bonds, fixed-income securities, quantitative investment, multi-strategy investment and so on. In the first decade of 2 1 century, hedge funds swept the world again. In 2008, the total assets held by global hedge funds reached 1.93 trillion US dollars. However, the credit crisis in 2008 hit hedge funds hard, and their value shrank. In addition, the liquidity of some markets has been blocked, and many hedge funds have begun to restrict investors' redemption. Belonging to the trust fund, it refers to the investment fund whose scale has been determined before issuance, fixed within a specified period after issuance and traded in the securities market. Because closed-end funds are traded by bidding in securities trading, the transaction price is affected by the relationship between market supply and demand, which does not necessarily reflect the fund's net asset value, that is, the transaction price of closed-end funds has a premium and discount phenomenon relative to its net asset value.