There are quite a few differences, but to us there are only three things we care about:
1) Mutual Fund Managers make money off of churning and fees and there is not much incentive to make money for you.
2) Hedge Funds are not bound by regulations for leveraging but the manager only gets paid when you make money…a little better deal, but the home gamer or retail investor can’t play…sorry.
3) Very few can beat market average. And by market average, I mean the S&P 500…not the Dow Jones.