hedge our bets

reduce our risk

TRANSLATION

hedge one's bets = ein Risiko eingrenzen --- GOOGLE INDEX hedge one's bets: approximately 500,000 Google hits

STATISTICS

IN THE PRESS

Renault HEDGE BETS over Formula 1 future

(BBC - News Headline)

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But in this economy, it makes sense to HEDGE OUR BETS.

(Newsweek magazine)

Did you
know?

hedge one's bets
idiom

- to protect oneself against making the wrong choice

(Cambridge Dictionary of American Idioms)

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The verb "to hedge" derives from the noun hedge, which is a fence made from a row of bushes or trees. These hedges were frequently made from tough, spiny plants that are nearly impossible to penetrate. To hedge a piece of land was to limit it in terms of size by building a barrier around it. This eventually led to the sense of "securing" or "limiting the risk" of something.

A bet is an amount of money that is risked on the outcome of an event, often in a sports competition. Thus to hedge a bet is to take other measures to avoid or limit the risk associated with a choice that is being made.

Hedge funds are a popular type of financial investment for people with relatively large amounts of money. Although hedging means limiting one's risk, hedge funds are actually meant to maximize the return on investment.

The use of hedge in this sense is historical and is based on how hedge funds originally tried to limit the downside risk of a bear market (when stock prices fall). Although the term implies otherwise, today hedge funds carry more risk than the overall market.

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SMUGGLE OWAD into today's conversation

"Instead of funding just one project, we should hedge our bets and invest in several."

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