Hedge funds definitely have huge clout (several trillion, I believe), but they do surprisingly poorly. I have been getting hedge fund info for quite a while now. They are all over the map with their returns, in fact, most of them are really pretty bad.
I don't know how they manage to convince people to pony up the kind of money they require.
I think 90% of them are a complete ripoff, and there's practically no accountability. Nobody seems to insist that managers show even a little record of success at all, much less a consistent record. They charge incredibly high fees for that incompetence, too. They're much worse than mutual funds, which at least try to adhere to some standards (or are forced to, I guess that's more accurate).
If I had 10 or 20 million lying around with nothing better to do, I sure wouldn't put it in a hedge fund, I'd find a good program trading outfit instead---the only sure bet on the planet that I am aware of (i.e., ultra-rapid exploitation of the arbitrage between the index futures and the underlying).
IMHO, you're better off taking your money to Las Vegas or buying lottery tickets.
T |
