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Daily Money Tip: Links between mutual, hedge funds

Philly.com – What is the main difference between a mutual fund and a hedge fund? These days, the goodies inside the portfolios are strikingly similar. The only difference might be the wrapping paper.

For instance, which is riskier? A hedge fund holding hundreds of diversified stocks, or a mutual fund such as the popular Fairholme Fund (symbol: FAIRX), which has about 40 percent in one stock – the recovering insurer AIG? An investor’s aptitude for risk should be the result of analysis.

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