Hedge funds Alpha fees for beta performance

The costs of investing in a hedge fund are too high. Investors generally pay a 2% management fee and 20% of returns. On top of this, hedge fund advisors typically charge around 1%. Trading costs, which are often large, are also carried by investors. Burdened with excessive charges, hedge fund managers need to excel just to provide mediocre returns for their investors. All this has long been an open secret in the hedge fund world. Fees were expected to decline when, after the stock market bubble...