Fact: Hedge fund fees are high.
Indeed, hedge fund fees are unquestionably the highest amongst active managers of marketable securities.
Fact: Some premium goods in life are considered worth their price by the buyers.
Aston Martins, private schools, and family guides at Disney World are all super expensive and yet worth every penny to their consumers.
Fact: Hedge funds have delivered gross returns that are very impressive.
In all the hullaballoo about hedge funds and the fees they charge, we often miss the important fact that hedge funds have been very successful in generating high risk-adjusted returns at a time when stocks and bonds have been challenged to meet spending needs.
While the harshest criti