Understanding Hedge Funds in Equity Markets

In the context of equity market structure, various market participants play different roles. An investor is interested in understanding the specific functions of different types of participants in the equity market to better assess market dynamics. Consider the following scenario:

A hedge fund engages in significant trading activities, utilizing both traditional methods such as long-short strategies and more complex techniques involving derivatives and high-frequency trading. This fund seeks to maximize returns while managing risk through various methodologies.

Which of the following statements best describes the role of hedge funds among equity market participants?