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The problem with the big funds are that they remaking money from their fees... e.g they do not have incentive to look for alpha... best strategy for them is pre
by SirLJ 10y ago
The problem with the big funds are that they remaking money from their fees... e.g they do not have incentive to look for alpha... best strategy for them is preserve capital and live off the 2% fees
- yoasif_ 10y agoYou'd have a point if the competition charged fees on a percentage of "alpha" generated -- but they don't, they largely charge more fees than index funds, irrespective of whether they outperform.