There are several reasons for not using hedge funds.
- Unless one can hire a manager who is consistently in the top quartile forget it.
- Fees are much too high. Generally 20% of profits plus 2% of assets.
- The funds lack transparency. Who knows what the manager is doing.
- Do I need to mention Jon Corzine?
- Most of us do not have sufficient wealth to even consider a hedge fund manager.
- If the above five are not sufficient, then read this article.