The people that invest in hedge funds are, by definition, sophisticated investors. I don't buy the idea that they didn't understand the implications of a "two a

The people that invest in hedge funds are, by definition, sophisticated investors. I don't buy the idea that they didn't understand the implications of a "two and twenty" fee structure until recently. What you have said is certainly true for the average retail investor that simply isn't legally allowed to invest in a hedge fund, of course.