Hedge funds pursue three main goals: portfolio diversification to reduce risk, risk management to avoid volatility, and reliable returns over time through various investment strategies. Some common hedge fund strategies include long/short equity funds, credit funds, global macro funds, quantitative funds, event driven funds, relative value funds, managed futures trading, and multi-strategy funds. In 2014, institutional investors were most interested in long/short equity funds, global macro funds, and multi-strategy funds.