`AIG, Goldman Sachs, Merrill Lynch, etc, are all non-traditional hedge funds. IE- They don't call themselves hedge funds, buts that what they are. A Traditional Hedge Fund is unregulated and calls itself a hedge fund. Please don't insult, theres no room for that here�. The problem you seem to have is that you can`t differentiate between industries. You seem to think that all companies which offer financial products to investors are Hedge Funds. They aren`t. Hedge funds pedal various medium to high risk financial instruments that are usually highly leveraged in order to make extra high returns for their aggressive mided clients. Insurance companies like AIG offer financial security products that are designed to minimize risk. In return, they receive money for the risk they are taking on and try to invest it in conservative investments that are secure and provide low risk. In fact, if you ever bother to read an insurance company`s annual report, you will see how conservative the investment portfolio is. Singole A and up rated stocks and bonds, and alot of Treasuy bills. You wont find anything like that in a Hedge Funds portflio. Where should I send the bill for the investment 101 lesson. To your parent`s house..