Want to make a fortune for yourself without making a fortune for your investors then run a hedge fund. Heads I win, tails you lose.
More here – Institutional Investors Alpha
Want to make a fortune for yourself without making a fortune for your investors then run a hedge fund. Heads I win, tails you lose.
More here – Institutional Investors Alpha
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This just confirms what I’ve known for a long time – I must be responsible for managing my own capital.
I love the quote in the article:
“at least 12 individuals on the list posted single-digit gains in the main fund of funds, underperforming the S&P 500’s 13.7 percent return in 2014”.
Getting paid hundreds of millions for underperforming the index!
To me it really shows the power of the investment guru “story”. All these hedge fund managers have a compelling marketing “story” about their proprietary investment “system” that allows them to raise and keep huge amounts of investor funds when the raw statistics shows that their claimed edge is false.
The issue that stretches my understanding of people is that even when shown that hedge funds are a crap investment vehicle people still pour money into them. It is quite a remarkable phenomena how stupid people can be.
I always thought investing in something that requires regular trimming was pointless.