The Hedge Fund Smell Test

The Hedge Fund Smell Test

In "Hedge Fund Investing: The 4-Ps," I discussed the notion of due diligence and how investors might go about selecting a hedge fund manager. In theory, the range of criteria that can be used to make such a assessment is unlimited, which means that it could be hard to...

Hedge Fund Investing: The 4-Ps

Hedge Fund Investing: The 4-Ps

There are various reasons why someone might want to invest in a hedge fund. The most obvious, of course, is performance, or more accurately, the prospect of acceptable future performance, however that is defined. There is no point in entrusting funds to a manager if...

Hedge Fund Investing: A Contrarian Dream

Hedge Fund Investing: A Contrarian Dream

Many commentators have voiced opinions about what is wrong with hedge fund investing. In “The Misguided Focus on Hedge Fund Fees,” for example, I discussed widespread criticisms of the fees charged by managers. But complaints about performance have been just...

The Misguided Focus on Hedge Fund Fees

The Misguided Focus on Hedge Fund Fees

Few doubt that billionaire Warren Buffett is a smart man and a savvy investor. But he is also a hypocrite when it comes to the subject of hedge fund investing. At the Fortune-sponsored Most Powerful Women Summit in October, he criticized the hedge fund industry, most...