That doesn't happen in hedge funds. Most large funds fire traders after the first risk limit is hit. When you are graded monthly, there is no room for error. M

That doesn't happen in hedge funds. Most large funds fire traders after the first risk limit is hit. When you are graded monthly, there is no room for error. Most of the grousing about hedge funds is because they failed to keep with the market...guess who had the last laugh? I know one fund in particular that was huge, had big outflows because they apparently were out of touch...up 20% this year. Another one converted to a family office...they have been up 50%+ every year. There is also a big difference between the big macro, multi-strategy funds and the equity funds that are basically run with no regard for risk.