A hedge fund is an investment fund that pools capital from accredited investors or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk management techniques. Hedge funds represent an opportunity to trounce the market and add an additional element of diversification beyond stocks and bonds. They do this by employing “alternative” strategies that can include everything from short-selling stocks to taking large positions in companies and actively influencing change. It also provides consistent returns and increases the level of portfolio stability when traditional investments are under performing or, at most, are highly unpredictable.