Hedge funds earn big returns for investors. Find out how they do it and whether you can, too. : Ever wonder how hedge fund managers think and how they are sometimes able to generate explosive returns for their investors? You aren't alone. For years, hedge funds have retained a certain level of mystery about them and the way they operate; and for years, public companies and retail investors have tried to figure out the methods behind their (sometimes) apparent madness. It's impossible to uncover and understand each and every hedge fund's strategy—after all, there are literally thousands of them out there.