But its biggest percentage, 26 percent, was in something called "absolute return."

The hedge fund business is defined by absolute returns.

Their funds follow a multi-strategy approach that is often described by industry professionals as either market neutral or absolute return.

They are better suited to absolute return and hedged strategies rather than equity based investments.

Prices move in the opposite direction from yields, and high prices could lower an investor's absolute return.

Contributing to the bottom-line orientation will be an era of lower absolute returns, many investment professionals say.

(That means the portfolio does not necessarily own the five funds with the largest absolute returns.)

There are also vast differences, firstly they do not seek absolute returns regardless of the performance of the market.

"Our investors want to make absolute returns."

Absolute Return + Alpha magazine is a monthly periodical that provides a focus on the hedge fund industry.