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A comment on Hedge Funds Are Pocketing Much of Their Clients' Gains with 'No Limit' Fees. Parent comment

Re:Hedge Funds Are Pocketing Much of Their Clients' Gains wi... by testval123 on Tuesday February 11, 2025 @12:43AM (#43009384)
The purpose of a hedge fund is to ‘hedge’ ie deliver alpha and not index beating returns. Obviously the fee issue is another layer.
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Re:Hedge Funds Are Pocketing Much of Their Clients' Gains wi... by jfengel on Wednesday February 12, 2025 @09:39AM (#43025827)
That was the original idea. They realized that they could also run the risk equations in reverse and make index beating returns, at least in the short run, and pretend that they could also do it in the long run. Hedge funds got a reputation as overpowered mutual funds for the wealthy.
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