Discover the advantages and pitfalls of hedge funds and the questions to ask when choosing one. : Roger Wohlner is an experienced financial writer, ghostwriter, and advisor with 20 years of experience in the industry. Unlike mutual funds, hedge fund managers actively manage investment portfolios with a goal of absolute returns regardless of the overall market or index movements. They also conduct their trading strategies with more freedom than a mutual fund, typically avoiding registration with the Securities and Exchange Commission (SEC).