1. a.

Hedge fund provides a better vehicle for earning returns in both up and
down markets.
b. wide variety of available investment strategies may appeal to
customers with high risk tolerance.
2. Hedge fund provides a very different compensation/incentive scheme
than the typical mutual fund. Based on some 5%-25% of profits based on year
end returns.
3. Stock picking skills. Because risks can be minimized by hedging. With
good stock picking skills he can earn profit in both the directions of
market.
a. Set emotion aside and think rationally
b. Ability to take risk and understanding of your risk tolerance and how
to manage risk
c. Identify competitive advantage and how can you capitalise on ur
competitor expertise