Forbes – Hedge fund investing promises a very simple outcome: Give your money to a manager and he or she will do whatever it takes to make your assets rise in all markets.
Stocks down? Covered. Bond crash? Covered. Neither? No problem. Hedge fund managers attempt to do this by being very active with your money. The general theme is to use leverage to ensure that extreme outcomes don’t sink the ship while asset picking provides a solid gain, what the marketing departments of such firms call “absolute” return.