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Hedge Funds Aren’t All They’re Cracked upto be
By JLP | July 27, 2006
Here’s an interesting article about hedge funds from yesterday’s Getting Going column by Jonathan Clements. Hedge funds are normally vehicles for the “rich.” The typical hedge fund charges 1% per year plus 20% of any returns above a certain threshold (like T-Bills). Wow! It’s no wonder why managers are always leaving fund families to start their own hedge funds!
Anyway, if you are in the middle class like I am, rejoice in the fact that you can’t invest in hedge funds. Most likely you’ll do better investing in a plain-Jane index fund.
Topics: Getting Going, Investing, Jonathan Clements | 1 Comment »
July 27th, 2006 at 1:39 pm
The term “hedge fund” refers to any type of Private Investment Company operating under certain exemptions from registration under the Securities Act of 1933 and the Investment Company Act of 1940.