Hedge Funds
Hedge funds are often classified under alternative strategies and include a wide variety of investment approaches. Hedge funds generally have a component of the portfolio that is used to purchase individual stocks and another component that is selling individuals stocks, also known as shorting. Hedge funds attempt to generate positive returns in all market conditions. The strategies used are often complex and the associated fees are often more expensive than regular mutual funds. In many cases performance fees and other charges may also apply that do not apply with most mutual funds. Hedge funds are more suitable for high net worth individuals that understand the associated risks.
