{"id":1652,"date":"2016-05-05T07:07:29","date_gmt":"2016-05-05T11:07:29","guid":{"rendered":"https:\/\/hedgeanswers.com\/?p=1652"},"modified":"2016-05-05T07:07:29","modified_gmt":"2016-05-05T11:07:29","slug":"enough-about-the-fees-already","status":"publish","type":"post","link":"https:\/\/aandcadvisors.com\/he\/enough-about-the-fees-already\/","title":{"rendered":"Enough about the fees already"},"content":{"rendered":"
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Once again the Oracle of Omaha and his sidekick have unleashed a barrage on the hedge fund industry and the \u201coutrageous\u201d fees managers charge. At their annual Woodstock of Capitalism the pair astutely pointed out that market volatility, combined with political uncertainty, has hurt performance at many funds. Despite this, what really seems to be most troubling to them is the fees hedge fund managers charge.<\/p>\n

While Mr. Buffett and Mr. Munger have a point (the fees ARE high), they are missing the fundamental issue \u2013 the free market. The market, you see, is what dictates the fees. When the market decides that hedge fund fees are too high, well, guess what: The fees will come down. It seems that both Mr. Munger and Mr. Buffett have forgotten this basic tennet of capitalism<\/p>\n

Perception is reality when it comes to hedge funds. Investors believe that they’re getting a better product with a hedge fund than with a mutual fund and they’re willing to pay for it. It’s no different than picking The Palm over Outback \u2013 both are steakhouses, both serve meat and potatoes, but one is clearly superior and customers are willing to pony up more for its filet mignon.<\/p>\n

When the market decides that hedge fund fees are too high, the fees will come down. Period, end of story. Right now, though, it seems that the only ones complaining about fees are those who can’t charge them.

\u05d3\u05d1\u05e8\u05d9\u05dd \u05e9\u05de\u05e9\u05d2\u05e2\u05d9\u05dd \u05d0\u05d5\u05ea\u05d9<\/strong><\/p>\n

Once again I am thinking about the telephone. I don\u2019t understand why people are afraid to pick up the phone. I am sick and tired of emails and texts. It’s really nuts \u2013 nobody likes to talk on the phone anymore. If you call someone now, they get confused, they get concerned and sometimes they are even outraged. The phone is a great tool and it should not be disregarded simply because one is afraid to use it.<\/p>","protected":false},"excerpt":{"rendered":"

Once again the Oracle of Omaha and his sidekick have unleashed a barrage on the hedge fund industry and the \u201coutrageous\u201d fees managers charge. At their annual Woodstock of Capitalism the pair astutely pointed out that market volatility, combined with political uncertainty, has hurt performance at many funds. Despite this, what really seems to be […]<\/p>\n","protected":false},"author":2,"featured_media":1653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-1652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t