The Hong Kong Securities and Futures Commission (SFC) reminded investors in a press release today that although hedge funds are often marketed as "all weather" funds for different market conditions, their strategies do not always work for all market conditions.

The SFC also published an updated leaflet on hedge funds as part of its investor education leaflet series. The publication explains the basic concepts and risks of hedge funds. It stresses that hedge funds are only suitable for those who can understand and bear the risks involved.

When considering a hedge fund, according to the leaflet, investors should read the offering documents to have a clear view of the investment strategies and risks, ask questions, and avoid signing anything that they don't understand.

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