Hedge Funds Back in the Black

The news this week is that the well run hedge funds are starting to make serious money, recouping losses and recording record gains.  Why?  Simple.  Hedge funds are lightly regulated and therefore free of political pressure to stay on the long side of the market -- they can use strategies that profit from both the ups and downs of the market.  They are free to use more investment strategies than mutual funds and other investment funds that are, through a variety of regulations either direct or indirect, told to make money long or stay out (hold fixed income,secure debt) of the market.  Of course they will show profits before the more heavily regulated funds can.