Big money comes from volume. Let's say a hedge fund manages $100 million. You have profits at an average of 20% yearly (before fees), you charge the usual 2/20 commission. You get $4M management, and $8M performance fees. That's 12 million, suppose your operating expenses are covered by the $4M management fee. Then you get $8M Now suppose you trade retail with $500k (note that few retail traders have 500k to trade), and make 100% profits per year (even fewer traders CONSISTENTLY double their money every year), withdrawing all your profits, you get 500k Compare: $500k vs. $8M, which would you prefer?