This article was authored by Logica Capital Advisers, Los Angeles. Investors use hedge funds (HFs) for a variety of reasons, including diversification and improved risk adjusted returns. However, our observation has shown that HFs carry some misconceptions about their benefits. We have listed a few of these misconceptions which are extracted from our larger study, The Misconception of Hedge Funds. MISCONCEPTIONS OF HEDGE FUNDS: The vast majority of HFs produce returns with ne