HedgeAlytix Library and Blog

Hedge Fund Fees: Value-added of Hedge Fund Management

Warren Buffett has been criticizing hedge fund managers for charging investors a 2% management fee and 20% performance allocation, and then delivering poor results. He is – to a certain degree – correct. Too many funds are unable to compete with the inexorable gains posted by securities over the past eight years or so. However, many other alternative investments have been soundly beating the market and passive index funds. I think we all agree that managers who can consistently outperform should be compensated for that outperformance.


The HedgeAlytix research platform provides the Intelligent Tools to search for, evaluate, compare, track and contact managers on the right side of the performance matrix. The online application focuses on performance, not personality or prestige. Clients tend not to be the "marquee" investors and the funds we monitor similarly are not marquee funds. Look elsewhere if you want information about the multi-billion dollar vehicles that capture the attention of the pundit class.

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