1. Hedge Funds are Inherently Risky
The press likes to print the word "risky" immediately
preceding "hedge fund investments". And they are half right.
Hedge funds are aimed at sophisticated investors and typically
employ strategies that use complex trading techniques and
instruments that pose risks unfamiliar to the mutual fund
crowd. But, while mutual fund investors have been tabulating
double-digit losses over the last couple of years, hedge fund
investors have seen modest gains, begging the question:...