Here's an article form Coindesk identifying at least 6 hedge funds that are interested in bitcoin -> http://www.coindesk.com/6-new-hedge-funds-seeking-bitcoin-returns/. The catch is that each of these funds is a bitcoin-focused hedge fund...so...of course they would invest in it.

As for other mainstream hedge funds, bitcoin speculation is tough. It can't be used as a reliable hedge due to the volatility. It can be the focus investment because it's damn near impossible to predict price direction 3, 6, 12 months out.

One final thought - bitcoin isn't difficult for anyone to own. And people that invest in hedge funds are getting assets, strategy, or contracts are that are relatively difficult for regular folks to buy and own.

Maybe, it's showed the difficulty about maintaining of investment management, so value achieve above the average and the customer usually show impatience when they got poor investment performance. But still they have own Policy?

They don't understand and don't trust Bitcoin. They are too conservative

Because they can bankrupt, it is too risky to invest in bitcoin especially if the funds aren't yours and especially investing in bitcoin.

With borrowed money I wouldn't risk in bitcoin unless there will be a fast dump and pump and you get fast profit but this happens very rare.

The obstacle of this can be the price stability of bitcoin which is affected by many other factors.

I can understand why hedge funds don't hold Bitcoin. It is difficult to buy in high volumes and hard to secure for a lay person (hell a lot of non-lay persons have lost a lot of coins!)
Why they don't invest in Bitcoin backed ETFs must be geographical, i.e. those that are available are somewhere else, and they don't exist where they are.

I do think the Winklevoss ETF would be a good thing for just this reason, but we really don't need paper Bitcoins either, GLD and SLV have destroyed physical gold and silver.

You could at least spell the man's name properly, and calling him a "M" illionaire is pretty hilarious too....
I guess if he was as smart as you, he could understand bitcoins   

hedge funds are a controlled banking/investing instrument.  our crypto investment packages use hedge fund techniques, but you are asking why bitcoin is not being included in the investment world and the answer is simple, the SEC.  there are rules and regs that control these things.  that is like asking why BTC is not listed on nasdaq. 

this is assuming that you are talking about investment fund trading, like you saw on the movie Wall Street?

the term "hedge" fund refers to a fund that has stocks or investments in it that are very certain to retain value, along with other investments.  the guaranteed value items are there to "hedge" against loss in the more aggressive items.

imagine our crypto funds, we have at least 50% BTC in the because the value is going to hold and if the wild alt coins included lose value or dump, the btc is there to protect the "fund" value

You should help these young ones, by providing the proper answer to their statements.   His name is Warren Edward Buffett and he is

currently worth 73.9 billion USD (2017) - Not bad for a stupid old man... right? He was ranked as the world's wealthiest person in 2008 and

as the second wealthiest in 2016. < He has done this, without the help of Bitcoin > I have read some books on the fella, and he is pretty

smart for a old guy/billionaire  

OP, there are many Hedge funds out there as listed by some posters already, but the big one will be coming soon. { Winklevoss twins }

Watch this space. http://www.coindesk.com/bitcoin-etf-anticipation-winklevoss-trust-deadline/

that's a correlation you don't hear everyday.  the market cap for a virtual currency.  is the universe turning inside out? lol, i know there is capital backing the bitcoin project as a whole, but i laugh when i hear this every time.  i imagine sitting down to play Monopoly and someone announcing the Monopoly money is backed up this game by $25 real cash.