-->
Quoting the Crisis
03/02/2012
“
(
Source:
ritholtz.com
)
One of the questions that came up was fund manager under-performance. Starting with the usual data points — 80% of managers miss their benchmark, etc. — we then discussed why family offices, foundations and institutions were so willing to pay 2 20 for what is sub-par performance. Yes, 2011 was a rough year, but the problem seems to go much further than that.
One of the questioners asked, and surprised himself with the answer: “Based on all this, then why do we bother picking hedge funds anyway? Why shouldn’t we simply index?”
„Barry Ritholtz in Is Anyone Any Good at Picking Hedge Fund Managers? | The Big Picture
