Being smart with $$ - Hedge funds better for the manager than the investor

Hedge funds. Only the rich are lucky enough to buy them, right? And the hedge-fund managers get paid very well for offering such great returns. The managers usually get a 2% management fee which by itself is quite a bit. But they also get 20% of the returns they provide. Wow. That's a nice payday when hedge funds returned only 3% in 2014 compared to over 11% for stocks (says CNBC). In 2013 stocks did 26% vs. 9% for hedge funds! Sounds like the hedge fund managers have a much better deal than the investors.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com