6 April 2011

How to make money from Hedge Funds

This brief article will pour cold water over the shoulders of any investor who hands money to hedge funds charging a '2+20' percent fee without doing extensive due diligence. Maybe the numbers are not mathematically precise but the general drift of the conclusion in the article should be evident: Otherwise an investor would be better off to manage and/or sell a hedge fund or provide them with accomodation in Greenwich/Ct (or London's West End). One should not forget that 2+20 is not the only cost many investors (certainly most private investors) face as there will be additional fees for those in private banking departments or fund of fund managers helping to select the (hopefully) winning funds.