buyout titan thomas h. lee weighs hedge fund revamp. this is another example of how leverage makes people like geniuses. http://online.wsj.com/article/SB122836224535378663.html#printMode
Diversification among a fund-of-funds doesn't "work" when everybody is doing the same thing at the same time.
http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=apkf970EJb1w citadel it doesn't work because of the efficient market hypothesis. who in his right mind would pay 2%+20 and expect to beat the market over time.
. there are exceptions for the small traders/investors. however a2% +20 haircut on a large size portfolio cannot make it.
hey, what happ to the hedge part? methinks the only hedges where in the gardens of the overpaid hustlers.
The primary objective of the fund is to maximize the "2 and 20" before investors come-to-their-senses. As for the portfolio "making it", don't be distracted by such a trivial matter.