Dumb alpha: How to build an above average hedge fund
from CFA Institute's Enterprising Investor
From June 7:
I can’t make up my mind about hedge funds. On the one hand, the fees strike me as excessive. Call me Scrooge if you like, but I do not want to pay anyone 2 plus 20 for the privilege of losing my money. And, as Simon Lack, CFA, pointed out in his book The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True, there is a lot of evidence that, after fees, the average hedge fund underperforms a traditional balanced stock/bond portfolio in up as well as down markets.
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