Calpers, Nation’s Biggest Pension Fund, to End Hedge Fund Investments – NYTimes.com

Interesting. I wonder why there is no competition in hedge funds? For example, index funds charge less than 1% in fees yet had 2 to 3 times the return last year. Why aren’t there hedge funds with lower cost structures competing for business?

Does the principle of parsimony apply to investing also: the simplest approach (e.g., long only stocks and bonds) better than the complex (hedge funds with long, short, derivatives, and other unexplainable investments)?

http://mobile.nytimes.com/blogs/dealbook/2014/09/15/nations-biggest-pension-fund-to-end-hedge-fund-investments/

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