Follow the smart money for market-beating profits.Hedge funds are often some of the smartest players in the room, and usually the biggest. With their deep pockets, they can take controlling stakes in smaller companies… but many funds also build holdings in large, well-established firms as well.Those holdings tend to outperform the overall market by at least half a percent per year, an outperformance that adds up over time. Following this “smart money” of the investment world can give you an edge over other investors.