For all of you feeling left out of the Hedge fund craze, read this article. It basically summarizes how stupid Hedge funds are. Anybody can start one, there is little regulation, and you can even invent a track record.
The hedge funds that are good (very few) are not going to let you in and the ones that are willing to let you in (many) aren’t any good.
The conflicts of interests abound – especially in fund of fund hedge funds where the sponsor looks for hedge funds that will share revenue, not neccessarily perform.
This is a great article, if it wasn’t so sad it would be funny.
Scott Dauenhauer, CFP, MSFP