Institutions and hedge funds

Who Moves the Market — Lesson 3 of 5

After the banks comes the institutional layer: pension funds, insurance companies, investment funds and hedge funds. Their money is vast and their decisions relatively slow, but their effect lasts for months.

The differences between them

Type	Horizon	Behaviour
Pension funds	decades	steady long-term buying; they rarely panic-sell
Investment funds	years	they track indices or select shares
Hedge funds	months to years	they use leverage and short selling freely
High-frequency trading	fractions of a second	algorithms capturing tiny gaps

03 — Lesson 3 of 5

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