[onlyrealcuzzo]

Are they? Do many people invest in Hedge Funds with their 401ks? Aren't the vast majority of regular people's 401ks tied up in Index Funds?

My understanding was that hedge funds started mostly as a way to be more protective of wealth - i.e. you were sacrificing some potential gains to be more certain you wouldn't lose more than x%. Hedge funds have a lot more focus than that now - but (my understanding at least) is that hedge funds still are mostly for people with high net worths.

[foldingmoney]

My understanding is that most hedge funds get the bulk of capital from institutional investors, e.g. pension funds.