Rhunzzz

The Bull Case for Hedge Funds (Yes, Hedge Funds)

HOGWASH.

Hedge fund managers still charge 2%, more than most mutual fund managers. You think that doesn't incentivize them to grow AUM as well?

And performance fees. Here's the hedge fund deal - you have to share a healthy chunk of the upside with me, but you have absolutely no downside protection, and could in fact risk not being able to withdraw your money, at my discretion.

Hedge funds should not be unduly made a scapegoat for what was after all mostly the sins of bankers. But it's still a rigged game, where the house takes a cut of your winnings but you could lose everything.