how do hedge funds compare to other investments 
hedge funds mutual funds and exchange traded funds etfs all pool money contributed by many investors and attempt to earn a profit for themselves and their clients hedge funds are actively managed by professional managers who buy and sell certain investments with the stated goal of exceeding the returns of the markets or some sector or index of the markets they take the greatest risks while trying to achieve these returns in addition hedge funds are more loosely regulated than competing investments and they can invest in options and derivatives as well as esoteric investments that mutual funds cannot invest in 