Hedge funds: What are they good for?
from CFA Institute's Enterprising Investor
Absolutely nothing. That is the answer to the title’s question. It is also what hedge fund investors receive in return for shelling out exorbitant fees. The chart below looks at historical performance of hedge funds (blue bars) relative to diversified stocks (yellow bars) and bonds (green bars). It’s obvious that hedge fund performance has been relatively poor.
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