Playing the Hedge Fund Craze

Feeling left out of Wall Street's recent embrace of hedge funds? Take heart: A number of mutual funds use equally sophisticated strategies that may even be better than the real thing -- at least for the average investor.

Hedge funds were once reserved for well-heeled types looking for help in passing their wealth on to the next generation. Staggeringly high minimum requirements and exotic-sounding investment strategies kept retail investors on the outside looking in.

That has changed over the past few years, though. The mutual fund industry has gradually been rolling out new offerings that use intricate hedge fund strategies -- more on these below -- yet are tailored to meet the needs of the savvier retail set. Simultaneously, the number of hedge funds in the U.S. has mushroomed to an estimated 8,000 with about $1 trillion under management, leading to a greater awareness of the once-exclusive investment vehicle. ...