A hedge fund is an investment partnership between a manager and their investors typically set up through a limited liability partnership or LLP. The hedge fund management company referred to as the general partner or GP within an LLP structure provides the strategic direction for the fund, makes investment decisions, and is responsible for appointing the advisors such as accountants, stockbrokers, and custodians that the fund needs. The general partner will also typically invest in the hedge fund to demonstrate to investors that they believe in the investment strategy and have skin in the game, meaning the general partner is more likely to be responsible with the investment decisions of the hedge fund. Since their own money is at risk, not just the investors' money, the outside investors in the fund are referred to as limited partners or LPs. Since their role is limited to just investing money and not to have any say over the investment decisions of the fund. Once a hedge fund has raised sufficient capital from its investors, the LPs, it will then use that money to put its investment strategy into place.