3 ms·
Yes I'm aware of that, but it doesn't change the reality that hedge funds have an incentive to have more money from fewer investors, even if they have to be car
by dsacco 10y ago
Yes I'm aware of that, but it doesn't change the reality that hedge funds have an incentive to have more money from fewer investors, even if they have to be careful not to take on too much money overall.
- throwaway40483 10y agoAbsolutely. Reduce the number of friction points. "Managing money is easy. Managing investors is hard."
- Ntrails 10y agoWhich is how you end up with Access Funds who charge fees to put money into other hedge funds which they got capital into early and performed well. So now to get into a very successful fund you're paying two sets of fees and praying that they continue to outperform. Hedge funds are at best going to net break even as an industry after fees, quite probably negative. So to look at "Funds of funds" and say they're a good idea is pretty mind boggling.