Hedge funds are alternative traditional investments that operate on the principle of bringing together more wealthy investors who give fund managers to manage their own funds, fund managers invest these funds in various investments using different strategies for active return for their investors. The costs of participation are high, but the goal is to maximize the absolute returns that will compensate and increase the investment. Hedge funds have an aggressive management approach, using derivatives and significantly affect the domestic and international market, generating as much revenue as possible. Their impact is also significant during the global financial crisis that began in 2007 and lasted until the end of 2008, which sparked controversy over the regulation of the funds themselves. It is important to note that hedge funds are generally available to accredited investors as they require fewer SEC regulations than other funds. Precisely one of the biggest aspects that separates hedge funds from other funds and investment funds is the fact that these funds are in a weaker regulatory framework. However, this type of fund has not taken root in post-socialist countries, including Croatia itself. The Croatian market is still not developed enough for hedge funds to find fertile ground here, it is necessary to work on certain segments in order to make this possible.