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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (83877)	5/1/2007 5:54:51 PM
From: patron_anejo_por_favor	Respond to of 206334

>>Hedge funds are great investments----for the managers.<< Well said. Anytime there's that degree of asymmetry in the risk:reward equation between managers and investors, you can be sure someone is getting screwed. And it ain't the managers.......

To: carranza2 who wrote (83877)	5/1/2007 7:35:54 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 206334

When the managers are taking 20% of the profits and who knows how much of the principal as management i certainly don't want to defend hedge funds, but i doubt many "take" principal. assets are usually held by a third-party custodian. although there have been instances of fraud, with the perfectly legal incentives hedge funds get, who needs to be a criminal? note that 20% is by no means the upper limit of incentive fees. SAC charges 50%. its manager made a billion in 2005. en.wikipedia.org remember, Warren Buffett, the most successful investor in American history, only charges $100K a year for his services. the best way to become really rich in this country is to be a HF manager. the top 25 individual managers have annual salaries of around $350 million. no other profession comes close. if dabum3 really has a money machine, he could clean up as a HF manager.