Investors, Hedge Funds, Low Returns

Investors need to starve the hedge fund beast - FT.com: " . . . Hedge funds are extraordinarily expensive to run. Huge sums are needed to hire the skilled traders and analysts upon whose judgment their fortunes depend. And that is before the IT and other information costs a hedge fund incurs, let alone the fees it pays to intermediaries, especially investment banks. Unsurprisingly, these costs bear heavily on the returns received by investors. In a book published last year, Simon Lack, an investor, estimated that since the 1990s, the fees charged by hedge funds and funds of funds had eaten roughly 98 per cent of the returns they made. . . ." (read more at link above)




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