One of the best ways to make money and reduce risk in today's choppy market is through a classic hedge fund: one that bets on some stocks to go up and others to go down. Since January 2000, when the Dow peaked, hedge funds have risen 13% on average, while the typical stock has fallen 20%, reports Hennessee Group, a hedge-fund tracker. Over the past three years, assets in the 6,000 U.S. hedge funds have more than doubled, to $563 billion.
Most of that money has flowed in from the very wealthy, who can pony up the $1 million minimum investment...
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