Hedge Fund Math: Heads We Win, Tails You Lose
Here is a nice article written by James B. Stewart of The New York Times:
In a letter to Pershing Square Holdings Ltd. investors this month, Bill Ackman disclosed that through the end of November, the fund had declined 13.5 percent this year after accounting for fees. The reality is that many hedge funds reap far higher percentages of their gains than that stated in their fee structure. That’s because when they experience substantial losses they don’t have to give anything back. Investors seem to be finally catching on to the fact that most hedge fund managers share generously in the good times, but are exposed to none of the losses in bad. READ MORE HERE:
Hedge Fund Math: Heads We Win, Tails You Lose
Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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