This Ain't Your Grandfather's Hedge Fund Industry

This Bloomberg piece about hedge funds created quite a stir today. The basic gist of the article was – hedge fund performance is bad and they charge high fees which makes them really bad. It’s easy to jump on this bandwagon, make a bunch of oversimplifications and come to the populist conclusion that hedge funds are just a “compensation scheme masquerading as an asset class”. The reality is much more complex though and the whole idea of “hedge funds” has become a rather nebulous concept.