WSJ – A handful of mutual-fund companies say they’ve built a better mousetrap when it comes to investing like a hedge fund. But for investors, these funds require a very close look under the hood.
For many years, mutual funds struggled to compete with hedge funds, private investment partnerships that often offered better returns across both market ups and downs thanks to their esoteric strategies. Many mutual-fund companies have taken a page straight from the hedge-fund playbook and are offering funds that can profit when stocks and bonds fall. Others trade currencies and use complex derivatives.
