How Hedge Funds Transfer Wealth From Investors To Managers

Forbes – Earlier this year, Goldman Sachs announced that it would launch a new mutual fund that will let regular investors do what the billionaires are said to do: invest in hedge funds. As Barry Ritholtz explains in a terrific article in the Washington Post, this is not good news.

Once upon a time, hedge funds earned their outsize compensation by, guess what? Hedging their investments. This risk-mitigation strategy reduced the gains when markets were up but avoided some of the losses when markets were down.

Read Complete Article

This entry was posted in Syndicated. Bookmark the permalink.

Leave a Reply