(Union Leader.com) Politicians are tempted by the siren song of populism, which sacrifices sensible policy for applause lines. They should be careful of the unintended consequences of their eagerness to attack evil hedge fund managers.For about a decade, some politicians have been attacking managers of private equity firms for making too much money. The term “hedge fund” is thrown around less as a description of an investment vehicle and more in disdain for people we are supposed to detest.
In reality, hedge funds and other categories of private equity funds are simply individuals and institutions who pool their resources and use a manager — usually someone with an ownership interest — to decide how to invest their money.
