I wonder if it means "investing" or "spending money on..."

"DiNapoli's office lashed back at the report, saying the comptroller has been reducing hedge fund exposure and paying lower fees."



No, it means "exposure to risk".

  • Broadly, hedge funds tend to use high risk investment strategies. They often clump these high risk strategies into one fund to "hedge" the risk. If the investments have a 30% failure rate but a 50% return, you'd end up with a net 5% return (100-30 = 70 * 1.5 = 105%) - now ideally the managers can find a way to weed out those 30% that fail and bring it down to 20% (100-20 = 80 * 1.5 = 120% which is a huge improvement!) - an investment that might fail exposes any funds that invested in it to risk. This is the exposure that is being reduced by good fund managers.
    – corsiKa
    Jul 20 '17 at 17:34

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