A hedge fund is a type of investment partnership. Often, it is formally listed as a limited partnership or limited liability company, and the partners pool money from investors and engage in a wide range of investing activity. Commonly, hedge funds engage in investment activity that is riskier than typical investments. Hedge funds will often use leverage (i.e., borrowed money) to amplify their returns, but they can also place bets against the market to make money—even if the market goes down. There are a variety of different hedge fund structures, but it is common for fund managers to charge investors 20% of profits plus 2% of assets as a management fee each year. This is controversial because managers of large funds can make millions of dollars in management fees, even if investments perform poorly. Due to government regulations meant to protect the inexperienced investor, investing in hedge funds can be difficult for most ordinary investors.