Hedge Funds: Evil or Angels in Disguise

Stephen Todd Walker

Chapter 7 in Understanding Alternative Investments, 2014, pp 113-145 from Palgrave Macmillan

Abstract: Abstract Often the best time to invest is when it appears to be the worst time, when market conditions are deplorable. Smart Money typically has good timing. “The number of public pension plans investing in hedge funds has leapt 50% since 2007 to about 300, according to Preqin. State pension systems had $63 billion invested in hedge funds as of their fiscal 2010 and are expected to invest another $20 billion in hedge funds in the next two years, according to a recent report by consultant Cliffwater.”1 Hedge funds became better not worse after the Great Recession, as so many mistakenly predicted. Hedge funds have become more attractive to investors, both on an institutional and on a retail level. The landscape for hedge funds has ultimately become more competitive. Hedge funds have even lowered their fees. “The overwhelmingly majority of investors interviewed, both large and small, are united in the belief that the industry’s 2 and 20 fee structure is not sustainable—and that a number of the practices in the alternative investment industry (such as gates, side-pockets, etc.) will not endure.”2 One of the best-known hedge funds, Paul Tudor Jones, lowered fees. Hedge funds were also shown to add value, as evidenced by studies done on institutional investors in hedge funds. Returns also improved.

Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-37019-8_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781137370198

DOI: 10.1057/9781137370198_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().