Let's break down hedgefunds for a minute. I am aware, for the most part, the role they serve for society. However, I would like to ask a few questions to some experienced people who are in the industry.
1) what is the main role of a hedge fund firm. Day to day activities?
2) what are the most popular investments instruments they participate in?
I understand hedge funds invest in stocks, real estate and derivatives etc. But sincehave not been performing well lately. Why not put my money in an , Index fund etc. instead to achieve a higher return? Without being biased, what edge to HF have? I can invest my money in the stock market and achieve a higher return like Warren Buffet's argument. Am I missing something that HF do? Thanks.