Are all hedge funds hedged?
No (and this raises the question of how they can call themselves “hedge” funds as touched on elsewhere), some funds may be long-only in stocks, and may even use leverage- making them explicitly speculative and “un-hedged”. The correct questions to ask regarding hedge or absolute return funds revolve around how much perceivable and quantifiable risk underlies its returns. Thankfully, there are lots of clever mathematical formulae and clever mathematical people who will be able to help you with this.
