Forget all those sissy "Christian" mutual funds: the real challenge lies in starting hedge funds that are compliant with shariah, or Islamic law, which forbids riba ("usury") and gharar ("trading of risk"). Short selling, futures, and options are all prohibited. You can't use leverage, and you can't earn interest on your cash balances. Oh, and you can't invest in companies involved in the sale or distribution of alcohol, pork, gold, music, silver, tobacco and pornography, which also includes restaurants and motels that sell alcohol, casinos, movie theaters and financial services firms. Nonetheless, at least one shariah-compliant hedge fund has just been launched. It required the development, among other things, of a complicated but shariah-friendly way of selling short...which, I guess, is sort of like inventing a Sabbath-friendly light switch. Good stuff.