Hedge funds are investment alternatives. It's a fund that can go long and short and can use leverage. Mutual fund regulations do not allow that. There are many different strategies. Macro-economic hedge funds are the hardest to do because you need a giant infrastructure and giant staffing.
Most hedge funds are small specialist shops with two or three people.
Bonds, which are traditionally perceived to be safe investments, are unbelievably volatile instruments. Much more volatile than asset-backed lending strategy hedge funds. Hedging is fundamental to investing. It's a big benefit for anyone's portfolio. I personally invest only in hedge funds and I never worry about how the markets are doing.