Keeping an open mind

The term hedge fund is probably one of the most misunderstood definitions applied to collective investment vehicles. Popular misconception stems as much from the secretive nature of many managers, to press speculation as to the risk profile of the asset class. High profile failures such as Long Term Capital Management (LTCM) are seized on gleefully by the press as evidence of the dangers inherent in hedge funds. However, the truth is somewhat more positive. The first hedge fund was set up in 1949 by Alfred W Jones. He had, not surprisingly, noticed that trying to time markets was a notori...