Hedge funds used to be funds that mitigated/reduced risk by betting in both directions — that stocks would rise and fall using two different instruments, saying, regular stock purchases against shorting a stock. They were very specialized and very few.
Today they’re just huge pots of cash — many of them in the billions of dollars — that invest in everything from traditional stocks to (get this) movies. There are something like 7,000 active hedge funds today.
Are you saying that many hedge funds today aren’t really hedging anything?
I take it hedging in the investment arena is different than putting $100 on black, $100 on red, and $5 on 00.