I never understood why the wealthy invested in hedge funds other than it being a status symbol. A lot of them of shut down since 2008 but at the height of their popularity among the elite and wealthy, managers of hedge funds could keep up to 50% of the gains they made for the portfolio. Mutual funds and other "normal" investment vehicles could not get away with such highway robbery, but the wealthy loved it. I never understood it. Sure they had access to insitutional level investments, but the market has brought a lot of those niche sectors and alternative investments to the mainstream investor. Hence, why I think hedge funds have started to close so much
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