> long/short equity hedge funds have to be engaged in de facto insider trading* in order to consistently generate enough alpha to attract investors
You're probably right. Especially considering how big the fees were. Stevie's firm took 3% of assets for expenses plus 50% of the profits.[1] That's a very high hurdle.
The standard hedge fund fee is 2%/20% and even that is high enough that many funds don't beat the S&P (or whatever they're using as a benchmark) after fees and expenses.
BTW, Bess Levin at the site I linked to below is great for irreverent and snarky comments about Wall Street.
You're probably right. Especially considering how big the fees were. Stevie's firm took 3% of assets for expenses plus 50% of the profits.[1] That's a very high hurdle.
The standard hedge fund fee is 2%/20% and even that is high enough that many funds don't beat the S&P (or whatever they're using as a benchmark) after fees and expenses.
BTW, Bess Levin at the site I linked to below is great for irreverent and snarky comments about Wall Street.
[1] http://dealbreaker.com/2011/02/absurd-speculation-that-sac-c...