hedge funds: Thomas Schneeweis on 9 things to look at before investing in hedge funds

Thomas Schneeweis says most hedge funds have lower risk than individual stocks or even stock indices as individual stocks have an annual volatility of about 30%. "The S&P500s annual volatility is about 15%. Most hedge funds (with the exception of some long bias or global macro hedge funds) have an annual volatility below 15% and even commodity trading advisors (futures and option traders) have annual volatilities close to that of the S&P500," he wrote in his book.

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