” . . .normally people who invest in a hedge expect to lose that money.”
That’s a baseless claim without a word of truth in it. Multi-millionaires don’t invest with the expectation of losing money.
In a financial context, a hedge is by definition a position against one of one’s major positions. If you win on your hedge, it means you lost on your major position. Thus a hedge is an insurance policy. It is literally “hedging a bet”.
A person who invests in a hedge fund without an opposite position is a speculator whose methods are akin to piracy, and for whom no tears are warranted.