Hedge fund is now a meaningless term

Wow - great editorial from the FT. I have thought this for some time. Hedge funds are just funds. They are funds without many of the restrictions of conventional funds. They are the funds that are found in the financial theory. They can go short and long and take advantage of mis-pricing (if it exists).


FT.com / Comment & analysis / Editorial comment - Hedge fund is now a meaningless term: "The time has come to stop talking about hedge funds versus non-hedge funds, and to think about asset management as comprised of active and passive investors, with hedge funds a form of ultra-active management. In time, the industry is likely to polarise between the extremes, at the expense of traditional active management."