Hedge funds look like they’re down for the count, having been beaten-up by self-inflicted underperformance in the face of over-the-top fees, high-profile slip-ups, and investors stepping over them on their way to low-cost, passive investing strategies.
But don’t count Hedgies out just yet…
One reason hedge funds have been underperforming benchmarks has become abundantly clear and can be overcome (as you’ll see). They’re also knocking down fees to hold onto investors and attract new limited partners.
Not only that, the multitrillion-dollar trend towards passive investing could blow up spectacularly.
Today, I’m going tell you what’s going on with hedge fund underperformance, those exorbitant fees, and why the trend toward indexing could be hell for the market and a godsend for hedge funds.
But first, let’s all get on the same page…
This post was published at Wall Street Examiner by Shah Gilani ‘ October 24, 2016.