DO A HEDGE AND MUTUAL FUNDS HAVE TO PAY INCOME AND CAPITAL GAINS TAXES ON ITS INVESTMENTS?

If the account creates the traffic does it have to compensate the taxes or does the financier compensate taxes after they have the withdrawl from the fund? Or is it both? Same with Mutual Funds? If these supports do not have to compensate taxes upon their trades, this seems similar to the HUGE value compared to the normal investor.