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The funds gained their moniker for the practice of "hedging" risk by offsetting possible losses with other investments, although -- even more confusingly to the novice -- by no means all hedge funds do this anymore.
CNN: Peering over the hedge
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Current rates, however, do not come close to offsetting the purchasing-power risk that investors assume.
FORBES: 3 Key Takeaways from Buffett's Latest Letter
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So if the pound starts to fall, there is a risk that it will eventually feed into higher inflation, perhaps offsetting the effect of slower growth.
ECONOMIST: The economy