Proper tools needed to work a complex investment strategy

As they tend to use more complicated and more aggressive strategies than traditional funds, and are highly dependent on the fund manager’s judgement, hedge funds attract a higher level of volatility. For successful investment, risk limits must be carefully set and correctly monitored.
Hedge funds strategies deserve consideration as many of them offer the opportunity to generate returns independent of the movements of the broad capital markets.
Furthermore, many of these strategies have demonstrated the ability to generate attractive risk-adjusted returns over time.
However, as with any type of investment strategy, there are specific risks associated with hedge funds strategies that must be clearly understood by any potential investor.