We've noted before that Sharia-compliant investing products have been spreading as of late. So it should come as no surprise that some want to develop Sharia-compliant hedge funds. Is there such a thing? The issue, according to an article on ii.com, is that funds use lots of leverage to make bets on various securities. That would seem to violate Sharia principles because it smacks of gambling. There are ways around this, though Islamic scholars are divided somewhat on the issue. One idea is to sharply distinguishing hedging from speculating. But what about the bets? Well, no one has really cracked the nut, so to speak, but if there is a market, you can bet someone will.

For more:
- here's the article from ii.com