Investing in hedge funds

 

During any 30-year period, the American economy, as represented by SPY, an exchange-traded fund mirroring the S&P 500, which itself is a good representation of the American economy, has gone up about 1,000%. During the same period, the average mutual fund investor made less than 250%! Where does the difference go?

Top-earning professionals such as physicians, lawyers, and dentists can make as much as $400,000 annually.  The average full-time worker earns about $60,580 annually, so we can see that education pays.

It would take two years of top-earning professional income to equal what a top-earning Wall Street CEO makes in one week! That is where the difference goes!

What about hedge fund managers?

In a good year, top-earning hedge fund managers can make billions, that is, billions, with a b.

They do that by charging 2 and 20. That stands for 2% of the money you give them to manage and 20% of any growth. They don’t participate in the inevitable market declines.

How to invest in hedge funds

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Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me