Hedge funds are popular investment options that have been in the news a lot lately. They offer higher returns than traditional mutual funds but come with higher risks. Since the late 1940s, hedge funds have been growing rapidly, with $1.0 trillion currently invested in them. However, there have been instances of hedge funds failing, like the near-collapse of LTCM in 1998. This high rate of failure makes it challenging to find good long-term investments in hedge funds, so investors need to closely monitor market changes. It's important for financial advisors to inform clients that investing in hedge funds should only be done with discretionary capital meant for speculative investments.