No that is most certainly why it’s called a hedge fund because they are a hedge against volatility[1]. Also In what way does being uncorrelated make it useless

No that is most certainly why it’s called a hedge fund because they are a hedge against volatility[1]. Also In what way does being uncorrelated make it useless as a hedge? The implication is that if the market goes down your capital isn’t guaranteed to also lose value at the same rate and thus it is definitely a hedge. 1. >in sum, hedge funds are called hedge funds because they use a full array of hedging techniques to reduce portfolio volatility. https://www.imf.org/external/pubs/ft/fandd/2006/06/basics.htm#:~:text=In%20sum%2C%20hedge%20funds%20are,their%20wealth%20in%20volatile%20markets https://www.imf.org/external/pubs/ft/fandd/2006/06/basics.ht....