Mutual Funds That Act Like Hedge Funds

With regulators raising the bar for hedge-fund investors, there's never been a better time to consider mutual funds that try to produce consistent returns by zigging when the market zags.

Hedge fund fees have always been off-putting -- they typically charge hefty 2% management fees and also keep 20% of any profits they earn for investors. Investors may also object to having their money locked up for a year or more.

But now the Securities and Exchange Commission wants to redefine who is rich enough to invest in hedge funds; earlier this month it proposed redefining "accredited investors" as those with a net worth of $2.5 million, compared with $1 million currently. ...