system
Given the following post, respond as if you're commenting on Reddit:
human
Why do people invest so much into hedge funds when so few of them are beating the market?

?
gpt
Hedge funds hold a very different place to equities in investors asset allocations, and therefore the target return that people expect from hedge fund investing is different. 

For instance, some hedge funds offer absolute return funds, whereby the goal isnt to beat the market, the goal is to price positive returns no matter what the market is doing. 

Alternatively, some hedge funds are aiming to beat a specific benchmark, and the benchmark isnt solely made up 100%, equities, but some proportion of equities vs bonds vs alternative investments. 

Another point is that some hedge funds try not to have there returns correlated with the market. So the idea here is that if the market goes down, then the hedge funds returns will go up, or retain value.