A Warning on Hedge Fundsby Tom Murcko
The growth in hedge fund assets in recent years has been driven by the high profits of the fund managers, not by the filling of a genuine market need. People don't need a license or a degree or even any experience in order to start a hedge fund. Also, there are numerous shortcomings inherent in the hedge fund structure, including a lack of liquidity, a lack of transparency, and tax inefficiency. And fees tend to be high, an average of 1.5% of assets and rising. Most investors would be better off disregarding hedge funds entirely.
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