[seanmcdirmid]

Hedge funds suck though. They don’t invest in FAANG, they do risky stuff that doesn’t pay off, you are still comparing incomparable things.

I’m obviously a genius because 90% of my stock is in tech, most of us on HN are geniuses in your opinion?

[cap11235]

What do you think hedge funds do?

[seanmcdirmid]

They use crazy investment strategies that allow them to capture high returns in adverse general market conditions, but they rather under perform the general market in normal and booming conditions. “Hedge” is actually in their name for a reason. Rich people use hedge funds for…hedging.

[mvkel]

Downside protection. Hedging. Giving you gains at the lowest beta possible.