On hedge funds, from an insider…

From The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to be True by Simon Lack

“If all the money that’s ever been invested in hedge funds had been up in treasury bills instead, the results would be twice as good … The hedge fund industry has grown formless than $100 billion in assets under management back in the 1990s to more than $1.6 trillion today. … The top 25 hedge fund manager collectively earned $25.3 billion in 2009, and just to make it into this elite group required an estimated payout of $350 million.” p.1-2

“It is not as if hedge funds haven’t made money. They just haven’t passed those profits back to their investors. There is no shortage of immense investment talent available, although there is almost certainly too much capital in hedge funds for the available opportunities.” p.173

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