Hedge funds are a type of investment that use different strategies like global asset allocation and short selling to make money. Managers of these funds have different goals and use different tactics to reach them. Some funds use derivatives to make bets on global markets, while others profit from price differences in securities. Tax issues related to investors, managers, and strategies need to be considered. Factors like how easy it is to get your money back, how often the value of the fund is calculated, fees, where the fund is based, and regulations all play a role in deciding if a hedge fund is a good investment.