A great majority of them under perform the market average, and youre paying them an instant 2% management fee.

The 20% performance fee…is understandable, but I question the management fee. If youre able to truly perform and deliver, then you should be handsomely rewarded. But if you fail, you should get nothing…no so-called management fee.

Most investors in Hedge Funds…are much, much better off just investing in the S&P 500 broad market index ETF.

Id rather choose a few hedge funds or CTAs that are not market correlated, so I do not care what the market does while Im sleeping. I can always add to that a long index position myself. The goal for an investor, not a trader, is to get risk adjusted returns, not beat the market.

I dont disagree with the fees argument (which was added subsequently as seen by the time stamps), but Protege is a fund of funds, with not just one, but two layers of fees. Even with zero fees, youre always gonna underperform a long-only strategy during a full business cycle if youre hedged, as youre supposed to be if youre a hedged fund.

The whole point of HFs is to be uncorrelated so you can deploy more capital at risk at the same time. Problem is that 95% of HFs are garbage overpaid closet-indexers who arent even hedged, and most have unfavorable redemption terms that force PMs to liquidate positions when the strategy hasnt been working, which tends to be precisely the wrong time to liquidate. Your fast money investors basically make you structurally short gamma. Buffett, or the components of the SPX for that matter, have permanent capital.

I love how during every crash you have a bunch of 2&20 former McKinsey geniuses who get their face blown off cause they were selling deep OTM SPX puts masquerading as alpha while collecting their 20% every year of the bull market. Exactly the opposite of what a HF should be doing.

so I do not care what the market does while Im sleeping.

The goal for an investor, not a trader, is to get risk adjusted returns, not beat the market.More…Id rather personally have a see-sawing, relatively gyrating, high performance, overall better performing fund…then a somewhat very stable, low performing fund that doesnt move.

Just saying the latter sounds like it makes absolutely no sense to do.

If you want an absolutely flat, stable, uncorrelated market fund, that essentially goes nowhere….then just buy bonds and CDs.

The whole essence of the market and in life…is to be somewhat ambitious, strive for spite of the inherent lingering risks.

Hedge my butt…generally, basically all hedge funds got crushed as well during the housing 2008 crisis,

So-called expert minds and expert traders is laughable. Hedge Funds should be a fake PR and Marketing firm blowing smoke up your butt with their created, fabricated awe and wonder and prestige.

Some people have very modest market goals. 8-10% is somewhat conservative, dare I say.

I can do way more than that, but I personally wouldnt take on other peoples money or advise them.

Actually, it always makes sense as long as 1) returns are uncorrelated; 2) returns are above your funding costs. But this is assuming returns are truly uncorrelated, and your funding cost is stable. So, usually not the case in real life.

Id rather personally have a see-sawing, relatively gyrating, high performance, overall better performing fund…then a somewhat very stable, low performing fund that doesnt move.

Just saying the latter sounds like it makes absolutely no sense to do.

If you want an absolutely flat, stable, uncorrelated market fund, that essentially goes nowhere….then just buy bonds and CDs.More…When I do this with my savings, Im targeting a 8% to 10% overall return even in down to flat markets. If I can get that, Id be very happy.Robert MorseVP, Institutional Sales