Monday, October 26, 2015

Warren Buffett: Why hedge funds fail - MarketWatch

Warren Buffett: Why hedge funds fail - MarketWatch:



 "The fixed annual fees hedge funds charge are the real money-makers, not the contractual "bonuses" for performance. By extension, Buffett is making a statement about active managers of all kinds. They're not in the business of beating the market. They're in the business of attracting assets and that's all.


For example, a hedge fund managing $1 billion charges a fee of 2% of those assets per year plus 20% of trading profits."



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