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)?
Efficient Minds™ 