Quote:
Originally Posted by Peter_Spaeth
So why do they attract such huge amounts of capital, if people would be better off with index funds, or a mix of index funds and bond funds? Countless billions are invested in these funds.
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Everyone thinks they have an edge!
And the hedgies seem to be pretty good at selling their story.
No doubt, some of them are probably pretty good, and might even be worth their elevated fees. I think the general premise is their ability to deliver in any market, although they might miss out on the high highs, they'll also protect you from the downswings.
Often another marketing element is their ability to invest in nontraditional assets that might be off-limits in more traditional funds.
Of course, Buffett's bet didn't make the hedgies look all that great:
https://proinvestnews.com/2025/01/28...for-investors/