What's the justification for management fees at all, let alone such a steep one? The justification is that people are willing to pay it. Of course, you're pro

What's the justification for management fees at all, let alone such a steep one? The justification is that people are willing to pay it. Of course, you're probably asking not whether people pay it, but whether it's a fair price. The answer is no in general; hedge funds historically have underperformed the market.