Hedging his bets?

John Edwards has ties to a hedge fund that raises money for wealthy insiders.

In 2005 and 2006, Edwards was a consultant for the Fortress Investment Group, a New York-based investment firm that works mainly in hedge funds, the Washington Post reports.

Hedge funds typically handle big money accounts for small groups of investors and take bigger risks than retail mutual funds like the one in your 401(k) plan.

The work has attracted attention because Fortress has used offshore tax shelters in the past.

The company, which has more than $30 billion in assets, incorporated its hedge funds in the Cayman Islands to allow partners to avoid or defer paying U.S. taxes. An Edwards spokeswoman said it ended the practice around the time he left the company.

Edwards was criticized during his 1995 Senate run for using a personal tax shelter. He's also criticized them in his campaigns.

On the trail in 2003, he spoke out against "tax-free tax shelters for millionaires that are bigger than most American's paychecks for an entire year."