Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.

Not all hedge funds do. Dedicated short bias hedge funds are the main category of funds that designed specifically to make money when the market goes down. They do it mainly by shorting stocks, that is borrowing stocks and selling them at today’s prices; and buying them back at lower prices when the market falls. Of course, if the market rises, they have to buy the stocks back at a higher price and they lose money. They can get similar exposures using derivatives.

Absolute return hedge funds try to make the same amount of money when the market is up or down. They can use a lot of different techniques, but a popular one is to balance long and short investments. If the overall market goes up or down it doesn’t matter because the gains one type of position are offset by losses on the other type. The fund makes money if its longs outperform its shorts.

Most other types of hedge funds have some positive Beta, that is they make more when markets are up than when markets are down. On average, hedge funds have a Beta of around 0.4. That means if the market falls 10% in a short period, you expect the average hedge fund to be down about 4%.