Who are hedge funds primarily intended for?

Hedge funds are primarily intended for sophisticated investors who have a higher risk tolerance and can meet specific financial criteria. One significant target for hedge funds includes institutional investors, which often comprise pension funds, endowments, and other large entities that can deploy substantial capital and withstand volatility.

While option B mentions individuals who buy or produce commodities, this does not accurately reflect the primary audience for hedge funds. Hedge funds typically seek investors who are accredited, meaning they meet certain income or net worth thresholds, highlighting the focus on individuals or entities with significant financial capability and experience in managing complex investment strategies.

Institutional investors, as indicated in option C, are indeed a core target market for hedge funds due to their need for alternative investment strategies and their ability to absorb higher risks associated with hedge fund strategies that often involve derivatives, short-selling, and leverage.

The other options, such as speculators only or individuals with no minimum income requirements, misrepresent the nature of hedge fund investments. These funds are not intended for casual investors or those lacking the financial credentials that allow them to engage in the high-risk environments typical of hedge fund operations.