Welcome back to Season 2, Episode 6 of What the Wealthy Do.

In this episode, Stephanie Dorsey, CEO and Co-Founder of Margins Capital, breaks down one of the most mysterious and misunderstood investment vehicles in finance:

Hedge funds.

You’ve heard the term in the news, in movies, and in conversations about billionaires and institutional investors. But what actually is a hedge fund — and why do wealthy investors allocate billions of dollars to them?

In this episode, we unpack:

• What hedge funds actually are

• How hedge funds make money in bull and bear markets • The famous “2 and 20” fee structure

• Long/short equity, global macro, quant funds, and arbitrage strategies

• Why institutional investors use hedge funds for diversification

• The risks, high fees, and transparency issues investors should know

• Why understanding hedge funds can make you a smarter investor

This episode is part of our Alternative Investment Series, where we break down the strategies wealthy investors use to build and protect generational wealth.

Even if you never invest in a hedge fund directly, understanding how they operate will help you better understand risk management, portfolio construction, and how money actually moves in financial markets.

Because wealth isn’t accidental.

It’s structured.

Subscribe for more conversations about alternative investments, private markets, generational wealth, and financial strategy in the United States.