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Presumably the people who invest in hedge funds are intelligent, knowledgeable people who can understand these fees. The examples in the article don't require m
by Jabbles 10y ago
Presumably the people who invest in hedge funds are intelligent, knowledgeable people who can understand these fees. The examples in the article don't require more than school-level maths.
So why is there no demand (and ~hence supply) for "fairer" or more-aligned incentives? There must be a price (in management fees) which would eliminate the reward for losing against the market. In which case, is this article complaining about something that is not widely seen as a problem?
- SalvatoreDali 10y ago"Presumably the people who invest in hedge funds are intelligent, knowledgeable people who can understand these fees." You would be surprised. Many of these investors are large institutional funds like state pensions funds. They have a large sum of money that needs to be put somewhere, preferably with minimum due diligence, and 100s of mediocre indistinguishable funds to chose from. People are more apt to pay attention when they are managing their own money
- ec109685 10y agoDo you have citations for this?
- SalvatoreDali 10y agoFor which part?