Comments by "Magic Beans" (@Magic_beans_) on "Helping a 4th grader explain her loser dad's stupid hedge fund job lol" video.

@shane_rm1025 That would be negative correlation. Uncorrelated would be like a savings account or T-bills. The market could be +30% or -30% and those T-bills are chugging along doing their own thing. Which is kind of the point. Hedge funds can be volatile but they’re probably not swinging up and down in sync with the market. As long as you’re not keeping all your money there (university endowments keep about a quarter of their assets in hedge funds) you’re unlikely to have a situation where all your investments suddenly lose half their value.
1