Hedge funds have been growing in popularity for the last 15 years, but should they be included in a well-balanced portfolio? On the face of it, their focus on making money and the flexibility they seem to offer may be appealing, but there's more to hedge funds than meets the eye. By 2008, hedge funds had amassed over $2 trillion under management. But the crash of that year cancelled all the profits they had made in the previous decade. Things haven't improved much since then; and that's before you factor in the typical 2% management fee and 20% performance fee.