Hedge fund vs Mutual fund. Hedge funds are responsible for the liquidations we have seen in our markets. They are over leveraged and have exposure to the downside. That's why they call them hedge funds. Some hedge funds are probably over protected to the downside and like what happened in financial stocks they can create a profit from a selling frenzie. Who knows when the end will come but it will. The market can't keep going down forever. I would wait for sustained buying signals. If not, you will get wipped out every time they "sell the rally".