The Alternative Strategies Fund focuses on a stock hedging asset class, or a stock long-short.

FORBES: A Fund to Smooth Your Investing Ride

As a result of analyzing German data, and in light of the overall global economic risks, we have moved 15% of the GMG Defensive Beta Fund assets into cash, covered calls and other hedging instruments.

FORBES: Forget Spain And Greece, Signs Of German Weakening Spell Trouble For Europe

While Hayes was dreaming about a bull market, the hedge fund operators were doing just what they are paid to do -- hedging away their risk.

FORBES: Pact with the devil

The Julius Baer International Equity Fund is another good one (grades: A and A) that does some hedging.

FORBES: Riding the Dollar

Data from Hedge Fund Research, a consultancy, show that in the second quarter, a share-hedging strategy involving both long and short sales was the most popular in America and Britain.

ECONOMIST: Hedge funds