"Hedge fund" isn't a technical legal term but is basically just a loose umbrella term for private pooled investment vehicles that don't need to be registered under the Investment Company Act of 1940. Often "hedge funds" are engaged in a continuous raising of capital, require a large minimum investment, have a performance-based fee in addition to an asset-based management fee, use leverage, engage in short selling, and have a long lock-up period for withdrawals.
Mutual funds have lots of restrictions as set forth in the Investment Company Act of 1940.
