It's no secret that stock market performance over recent years has been disappointing, to say the least -- or abysmal, to be more realistic. And when the markets go down, mutual funds go down with them. So what are Canadian investors to do?

Hedge funds are alternative investments that are designed to provide investors with strong returns during both bull and bear markets. More widely available than ever before, the popularity of hedge funds has been growing rapidly in Canada, thanks to regulatory changes and the continued poor performance of more traditional investment vehicles. But with...