The journalist‐turned‐fund manager, Dr Alfred W. Jones, is widely credited as the godfather of the hedge fund industry and the creator of the world's first hedge fund. A journalist for Fortune magazine, Jones identified that price fluctuations of individual stocks consisted of two components; that which is attributable to the individual asset's performance, and that of the market. Jones structured an investment vehicle that attempted to minimize the risks associated with holding long‐term stock positions; by purchasing assets whose price he expected to rise, and 'short selling’ those that he expected to fall. Achieving growth of 17.3% in its first year, Jones' invention led to positive returns in 31 out of its 34 year life. Hedge fund strategies have evolved to include a variety of activities such as global macro, directional and event‐driven to invest in, amongst others, equity, fixed income, commodities money market instruments and debt.