Pretty Soon, They'll Have To Change The Name Of "Getting A Wedgie" To "...A Hedgie"
Hedge fund performance has been dismal and then some.
You'd have been better off putting your money under an actual hedge. https://t.co/bRFRTSRw8I
— Amy Alkon (@amyalkon) March 11, 2017
This has long been true. Which is why there is no reason to be jealous that only people with over $1M can invest in a hedge fund. Individual managers will wildly outperform. But that is almost always luck and they revert to the mean within a year or two.
The bigger issue is who is investing in the hedge funds. Bottom of the chart, pensions (public and private). Government funds are horribly mismanaged as a general practice. Which is part of the reason pensions don't really work.
Ben at March 11, 2017 5:38 AM
Did my comment just eat two other comments?
Ben at March 11, 2017 5:39 AM
The other comments were spam. I just woke up, saw 'em and deleted 'em.
Amy Alkon at March 11, 2017 5:40 AM
*looks at how much banks are paying me to borrow money my money and how much they'd charge me to borrow it back*
Anything above the rate of inflation is ok in my book.
Much of the public pensions are well and truly fucked. They're underfunded, and then they assume wildly optimistic returns on investment to make up the difference.
I R A Darth Aggie at March 11, 2017 8:07 AM
Yep IRA. It's the old I'll pay you two hamburgers next Tuesday for one today. If you don't have the money to pay your employees then you probably shouldn't be promising to pay them more later.
I've just always found the hate for people who invest in hedge funds stupid. They are almost always taking huge risks in the hopes they can beat the odds and make a killing. So you have two main groups, public officials and private fools with more money than sense trying to win a lotto effect. It is better odds than Vegas. But not really that good. Now owning or managing a hedge fund is a different story. There is a lot of money in taking money away from those who don't know how to manage it.
In a similar vein stock brokers are some of the last people you should get investment advice from. Just like a realtor they get paid when you buy or sell. So it is always a good time to buy and sell. At least for them. Also, if they were any good at picking investments then they wouldn't be handling your transactions. They'd be managing their own investments instead.
Ben at March 11, 2017 8:15 PM
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