The popularity of hedge funds rose in volatile markets around technology bubble. Hedge funds take both long and short investment positions in the market, trying to get a reliable income while insulating the fund's assets against market fluctuations. The challenge for managers of hedge funds, to demonstrate that an investment in a combination of long positions, short positions and their compliance with the fund's strategy can, at an agreed level of risk, provide higher returns than traditional mutual funds. "Hide
by Peter C. Bell, David Pietruszka Source: Richard Ivey School of Business Foundation 4 pages. Publication Date: October 31, 2008. Prod. #: 905E22-PDF-ENG