Hedge Funds invest in all assets, use long and short investment strategies, as well as using leverage and derivatives. Which of the following statement is incorrect?

Hedge Funds use long and short positions to increase or decrease risk

Hedge Funds use long and short positions to gain from mis-priced investments

Hedge Funds use short positions to gain from undervalued investments.

Hedge Funds use leverage to increase investments in risky assets.

Hedge Funds use derivatives to increase or decrease risk.