ASK THE PRO

Wonder where the money's going? Hedge funds. These privately managed, loosely regulated investment pools pulled in $24 billion last quarter. TIP SHEET's Linda Stern asked Rapoport for some perspective:

Why are hedge funds so popular?

The stock-market decline in 2000. Hedge funds are attractive because they can provide a return that has little or no correlation to the stock market.

What's new?

Hedge funds used to lock up investors' money for two years or more. Now there's monthly liquidity, and a lot more transparency. Funds have engineered their styles to cater toward institutions. Their goal is not to make 30 percent a year, but 1 percent per month, with little volatility.

Should everyone go buy a hedge fund?