Hedge Clause

Hedge clause

A clause in a research report or any published document, that attempts to absolve the writer of responsibility for the accuracy of information provided.

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hedge clause

A statement in an advertisement, a market letter, or a security report indicating that the information therein is believed to be accurate and that it has been obtained from usually reliable sources, with nothing, however, guaranteed. Essentially, a hedge clause indicates to readers that the writer believes the information is accurate and that reasonable care has been taken to ensure its accuracy.

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Hedge Clause

A clause in a published document stating that the writer(s) believe the information contained therein to be accurate, but that accuracy is not guaranteed. For example, the author of an advisory newsletter may say that he/she retrieved all information in the newsletter from reliable sources and has taken reasonable measures to ensure accuracy, but that these measures do not guarantee that the information is correct. Hedge clauses exist to protect authors from legal liability in case the information they disseminate turns out to be wrong and investors make bad trades as a result.