Hedge Funds Outperform Stocks and Mutual Funds in Recent Study
The article compares traditional and absolute return hedge funds, discussing their development, characteristics, and pitfalls for investors. Hedge funds aim for absolute returns by balancing investment opportunities and risk, while long-only managers define their return objective in relative terms. Hedge funds have been growing in size and diversity, with around 6,000 funds managing over $400 billion in assets.