> What's stopping hedge fund management firms from racing to the bottom by competing for customers? Having money doesn't automatically make you wiser or smarte

> What's stopping hedge fund management firms from racing to the bottom by competing for customers? Having money doesn't automatically make you wiser or smarter than the average Joe down the race track. Many wealthy people still believe hedge funds have "the knowledge" or some sort of edge. This is re-enforced by many funds being exclusive to those investing through a financial advisor, or with a minimum amount of capital to invest. Having wealth actually does open doors that Joe with his $50K of life savings can't access. Paying 2 and 20 is indeed less common than it used to be though.