Basically the title. Hedge funds underperform every year as compared to broader ETFs like S&P500 by more than 10%! Given this, who invests in hedge funds? Are they stupid or am I stupid?
[https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and-it-wasnt-even-close/](https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and-it-wasnt-even-close/)
In: 128
There are other things to optimize for than returns. If you’re trying to live off that money and the market tanks something fierce for a year before bouncing back you could heavily erode your capital. in that case you may want to optimize for risk or different types of risk or something in between
Latest Answers