Free investment funds
Hedge funds in Spain are legally referred to as alternative investment or free investment funds. They are investment funds that seek to maximize returns, regardless of the market trend, i.e. even in a bearish market (which, in normal circumstances, would imply losses). Such funds do not have the investment restrictions that are imposed on traditional funds, so they are free to choose the securities and instruments in which they invest. They use sophisticated strategies such as short-selling, leveraging, etc., some of which incorporate a high level of risk that the investor must be aware of. This is a heterogeneous group in which funds with widely differing characteristics and risk levels can be found.