1. I agree with the usually in this sentence 2. 1-2% monthly => 12-26% yearly, which isn't impossible or necessarily indicative of fraud. Though perhaps you're

1. I agree with the usually in this sentence 2. 1-2% monthly => 12-26% yearly, which isn't impossible or necessarily indicative of fraud. Though perhaps you're just saying that if things are too smooth that is a bad sign? 3. Agreed :) 4. If all investors thought this way, then it would be very possible to find such a strategy and not find enough money... The article didn't seem to be about any of this though -- the author is talking about biases in the way that investors look at gearing -- because you can always invest less than your intended amount to reduce gearing, or more (by borrowing money yourself) to increase your gearing, the question of how much gearing should be used is a per investor question as well as a per fund question. A point which doesn't seem to be addressed by your points here.