I'm thinking of the many fund managers who sold the farm yesterday causing the 350 point DOW panic attack...who are now watching the DOW up 500 points from that low. And hedge fund investors are paying 2% fees for that kind of talent? Wonder what they get for 4%? A limo ride to the poor house?
Hedge funds are the latest fad which will fade away like bell bottoms. 2% and 20% of profits, for some clone like overleveraged strategies. The fact that hedge funds are so popular show you how bad most mutual funds are. Just buy an index fund if you are going to buy a fund at all. Or better yet, T-bills. Money market funds are a rip off charging .75% for some nitwit to buy and sell commercial paper, Treasuries, government paper, etc for you.
And what of the Chinese government official who authorized the 3 billion invesment in Blackstone. You gotta know the folks at Blackstone are just laughing their butts off. They called the top perfectly. "So here's the deal Mr. Wang. You give us 3 billion dollars now. And in 30 days we give you back 2 billion. You write it off to our balance of trade, and you'll look like a hero in Beijing! Now, isn't capitalism great, Mr. Wang? By the way, welcome to America."