Hedge Fund Managers Are the Biggest Gangsters of All

http://gawker.com/hedge-fund-managers-are-the-biggest-gangsters-of-all-1532392791

But in what sense are these billion dollar paydays "earned?" Here is what George Soros' fund did last year to earn him $4 billion: itunderperformed the S&P 500 index by 8%. In other words, Soros charged his investors fees that are well over 1000% higher than what they could have paid for a simple index fund that would have earned them more money. (Update: Soros' fund manages his own money. Typical hedge fund fees are around 2%, versus less than 0.2% for an index fund.) Likewise, Carl Icahn earned $1.7 billion just for matchingthe returns of the broader stock market last year, and Ray Dalio earned$900 million after his main fund severely underperformed "both the average hedge fund and the U.S. stock market for two straight year

---Steve