Hedge funds differ from mutual funds in several ways, including their fee structure, regulation, investment strategies, and investor base. Hedge funds often charge a performance fee in addition to a management fee, while mutual funds typically charge only management fees. Hedge funds are also less regulated than mutual funds, allowing them to employ more aggressive investment strategies like short selling, leverage, and derivatives. Additionally, hedge funds typically cater to high-net-worth individuals and institutional investors, whereas mutual funds are more accessible to the broader public.