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Because you want your fund manager to outperform the overall market. If the economy tanks, and everything is down 10%, and you are only down 5%, that's defini
by edblarney 10y ago
Because you want your fund manager to outperform the overall market.
If the economy tanks, and everything is down 10%, and you are only down 5%, that's definitely a 'win' for you.
This is not the 'bad part' about hedge fund, there are other schemish things they do.
- SalvatoreDali 10y agoConsidering how hard it is to be 'up' when the entire market is 'down' this doesn't seem so bad. Considering the average hedge fund performances in a down market, it definitely looks like a win to me.