Seeking Alpha – To summarize some of the differences in managing a portfolio based on 13F filings versus allocating an investment to a hedge fund manager, the following list is helpful.

Access- Many of the best hedge funds are not open to new investment capital, and if they are many have high minimum requirements (in excess of $10 million in many cases). As Mark Yusko, owner of Morgan Creek Capital, said in Foundations and Endowment Investing, "We don’t want to give money to people that want our money. We want to give it to people that don’t want it."

Fraud & Transparency- The investor controls and is aware of the exact holdings at all times, thus eliminating fraud risk. See Madoff.

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