What's Driving the Hedge Fund Boom?

With many investors clamoring for these risk takers, it's time for an S&P guide to what's facing them now

Little did Alfred Winslow Jones know in 1949 that an investing strategy he's said to have created would turn into a $1 trillion-plus industry. Back then, the U.S. journalist began taking offsetting or short positions in shares to hedge equity market risk. And for much of the next 50 years, what we've come to know as hedge funds progressed slowly—before exploding in the late 1990s.

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