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You only have to say hedge and add the word fund, and many advisers and investors recoil in horror. ...

You only have to say hedge and add the word fund, and many advisers and investors recoil in horror. This is probably because they have been brainwashed into thinking hedge fund investing is like playing roulette. But it is not and it is important that hedge funds are better understood. If you are attracted by a hedge fund investment which says it has made 40% per annum (pa) for the last five years, and does so by gearing 4 to 1, then you must expect a high level of risk. But this is not what most hedge funds are about. Hedge fund managers don't want to lose money, almost more than they wan...