The distinction between mutual funds and hedge funds is becoming increasingly blurry, since many mutual funds are turning to using such hedging tactics as short selling, leveraging portfolios and investing in options, South China Morning Post reports.

They also offer investors the ability to participate in hedging techniques without committing to having their money locked up for a number of months or even longer and investment minimums of as little as $1,500.

In fact, assets in long-short mutual funds has gone from $4 billion at the end of 2001 to $21 billion today, according to Morningstar.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.