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: Is it riskier to be hedged or unhedged in the market?
And since even avid hedge fund investors, barring a few very aggressive