3,898 karma · joined June 17, 2013
This is just blatantly false. The majority of clients are large institutions. FYI I used to work for one.
Cue eyeroll. This triggered a rant in me. We really shouldn't be giving so much money to these people. But the problem is that we individually don't have much control over the matter because the majority of their clients are large pension funds, endowments, sovreign wealth funds, and government managers of social security, which themselves are managed by... managers who have an incentive to hand off the risk of being fired for poor performance to someone else. Very few clients are actually high net worth individuals who trust the skill of the hedge fund manager.
And indeed, most of them have no skill whatsoever. Hedge funds are, for a large part, part of a parasite economy, where large sums of money are diverted from astronomical sums of money without many people noticing.
which is highly suspicious.