However, the modern hedge fund industry has gradually developed into encompassing a vast assortment of investment strategies.
Because of that structural shift in the industry, hedge fund managers nowadays seek to profit from more speculative, riskier strategies, such as using leverage to amplify returns, i.e. borrowed funds.
Nevertheless, most hedge funds still have measures in place for portfolio diversification and risk mitigation (e.g. avoidance of over-concentration in a single investment), but there has certainly been a widespread shift towards becoming more returns-oriented.
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