Are hedge fund funds considered liquid?

Hedge funds are generally considered illiquid investments. Unlike publicly traded stocks or bonds, which can be easily bought or sold on exchanges, hedge funds often have restrictions on when and how investors can redeem their shares. Typically, these funds require investors to commit their capital for a set period, which can range from months to several years. This lock-up period limits the ability to quickly redeem funds, making them illiquid.

Moreover, hedge funds are less transparent and not subject to the same regulatory requirements as publicly-traded assets, which can further reduce their liquidity. Investors usually can't just sell their stake at any moment; they might need to wait for a specific redemption period to access their funds. This characteristic of hedge funds reinforces their classification as illiquid assets compared to more liquid investment options.