As we've explored in the previous lessons, hedge funds
cannot be described as a single asset class. Hedge funds invest in a diverse group of strategies that differ considerably according to the method of portfolio construction and risk management techniques. In this section, we'll find out more about the individual strategies.
While no two hedge funds are the same, most generate their returns by investing in line with a specific top-level strategy: equity
, relative value, event driven, macro, credit, niche, and alternative risk premia.