EDHEC, a French business school, diversification is another powerful reason why institutions think they should invest in hedge funds.

ECONOMIST: Hedge funds

First, there was business school at France's highly ranked EDHEC in Lille, followed by study at the London School of Economics.

WSJ: The Arnault Legacy

Work by the EDHEC-Risk Institute www.edhec-risk.com suggests it cannot.

FORBES: Innovation In Investment Vehicles