How smart are the really big investors, the ones with hundreds of millions and even billions to invest. I’m referring to the pension funds and giant foundations; the supposedly real pros.
They often use outside hedge fund and similar big-time management funds.
Those who follow my writing, know I frequently explain the huge bottom line cost to an investor who pays a “mere” 1½% or so of his or her assets as a management fee. But “smart” professional BIG investors pay much more. They fork over 2% and more to their advisers PLUS as much as 20% or more of earnings. That adds to the ridiculous cost!
Do the hedge funds now earn any more than an ordinary, well-disciplined, average John Doe can? The answer over recent-year experience has been a decided no, (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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