1. a.Hedge fund provides a better vehicle for earning returns in both up and down markets.b. wide variety of available investment strategies may appeal to customers with high risk tolerance. 2. Hedge fund provides a very different compensation/incentive scheme than the typical mutual fund. Based on some 5%-25% of profits based on year end returns.3. Stock picking skills. Because risks can be minimized by hedging. With good stock picking skills he can earn profit in both the directions of market.a. Set emotion aside and think rationallyb. Ability to take risk and understanding of your risk tolerance and how to manage riskc. Identify competitive advantage and how can you capitalise on ur competitor expertise