From BI: Everyone knows that overall hedge fund performance
has been lackluster since the financial crisis, but there are differing
explanations as to why. Last week, at the World Economic Forum in Davos, George
Soros threw in his two cents (but it was obscured by some other news).
Soros' bottom line was that hedge funds can't beat the
market, in part, because there are so many of them and they are now a dominant
force in the market.
The other reason why Soros says they can't beat (which is
sure to make some managers upset) is that the famous hedge fund "2 and
20" compensation scheme is eating into profits (2 and 20 = 2% of the
returns go to management fees, 20% returns go to the fund)
Read more:
http://www.businessinsider.com/george-soros-on-hedge-fund-fees-2013-1#ixzz2JI40vgei
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