What is a hedge fund, and why do the people who run them make so much money?
A: Like mutual funds, hedge funds pool investors' money. But they aren't required to register with the Securities and Exchange Commission and may be riskier than mutual funds because they're more apt to make speculative investments. Hedge funds typically charge 1 percent to 2 percent of assets as a management fee. Hedge fund managers, however, also charge a "performance fee" that typically
