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To: lorne who wrote (49304)	2/18/2000 12:49:00 PM
From: long-gone	Respond to of 116756

Quotes Your reactions: Got a comment? Let us have it. Current column: Hedge games Recent columns: The shot heard round the Web Customer disservice agreements Lost leader? Out of tune Archive: All the columns Send e-mail: David Futrelle Money.com section: See what's new Thursday, February 17, 2000 Hedge games Who wants to invest like a millionaire? Maybe not you. By David Futrelle If you want to be a millionaire, Regis offers you the chance three times a week. If you want to marry a millionaire, well, producers at Fox are going to make sure you get another crack. But if you want to invest like a millionaire, you may be out of luck. The rich invest differently than you and I do: they, or at least a lot of them, invest in hedge funds--secretive, largely unregulated pools closed to all but those who can afford to pump in $1 million--and even afford to lose it. We haven't heard much about hedge funds since the implosion of the grossly misnamed Long Term Capital Management fund a year and a half ago. Since then, though, hedge funds have been making a quiet comeback. Last year was a blowout year, with the average U.S. fund racking up a 40.6% gain, twice the S&P 500's return, according to Van Hedge Fund Advisors International. There are now several thousand hedge funds worldwide, with total assets in the hundreds of billions of dollars--and only a tiny percentage of funds are Long Term Capital-type risk-takers making highly leveraged bets on international currency and the like; most of them are much closer in spirit to regular mutual funds, investing in equities and bonds. Popular "market neutral" hedge funds go both long and short on stocks in a way, they say, that's designed to make money in both good times and (cont) pathfinder.com