Hedge Fund Weekly What's The Difference Between Private Equity Funds And Hedge Fund?

What's the difference between private equity funds and hedge fund? - hedge fund weekly

I read in Business Weekly that invest the pension funds, foundations, university and other large investors in hedge funds and private equity funds. The graph shows the returns that private equity funds were much higher than the hedge fund in 2006 and 2007, but also increases losses in 2008. What is the difference between the two? Did they invest in different products? If not, the basis on which a pension would choose to invest in one or the other? Thank you!