What a cynical world view you have. We all need to make a living. some do it by becoming a teacher, nurse or doctor, others by investing and charging 2+20. Where's the difference? 😉
Fully agree, (most) hedge funds cost a lot and underperform a simple cheap ETF.
A GREAT example is RIT Capital Partners - a publicly-traded investment trust run by the mythological Rothschild family. Underperforms massively since 2022, it has a lot of private equity and hedge funds in it.
Theoretically it should be a copy of the Yale portfolio - giving you access to amazing funds like Mithril Capital, Millennium Partners, and more.
Practically it just costs you a lot of money in fees, and underperforms a simple cheap ETF.
Another hilarious example is Bill Ackman's fund- another publicly traded fund. I remember reading someplace that he has such high fees that just to beat a simple ETF he will need to make 30% PER ANNUM. No wonder he spends so much time on Twitter- you need a lot of marketing to sell such a overpriced product.
Hedge funds are first and foremost designed to benefit the founders of the hedge fund, investors might benefit and equally they might not.
What a cynical world view you have. We all need to make a living. some do it by becoming a teacher, nurse or doctor, others by investing and charging 2+20. Where's the difference? 😉
My lord, my client wishes to enter a plea of guilty to the charge a being a cynical old fool 😁
The difference dear Klement is that the teachers, nurses and doctors, do not make exorbitant gains by exploiting mugs.
Fully agree, (most) hedge funds cost a lot and underperform a simple cheap ETF.
A GREAT example is RIT Capital Partners - a publicly-traded investment trust run by the mythological Rothschild family. Underperforms massively since 2022, it has a lot of private equity and hedge funds in it.
Theoretically it should be a copy of the Yale portfolio - giving you access to amazing funds like Mithril Capital, Millennium Partners, and more.
Practically it just costs you a lot of money in fees, and underperforms a simple cheap ETF.
Another hilarious example is Bill Ackman's fund- another publicly traded fund. I remember reading someplace that he has such high fees that just to beat a simple ETF he will need to make 30% PER ANNUM. No wonder he spends so much time on Twitter- you need a lot of marketing to sell such a overpriced product.