Part 7/14:
One distinguishing feature of hedge funds is their operational freedom. Unlike mutual funds that adhere to established protocols, hedge funds employ diverse strategies, including speculative bets on global economies, interest rates, commodities, and even entire sectors. They also invest in inaccessible assets like distressed companies, private loans, and rare artworks. This flexibility allows hedge funds to explore high-risk investments, leveraging positions and making daring plays using complex financial instruments that would typically jeopardize a traditional fund's stability.