The Heads, You Win Tails, I Lose Problem in Hedge Funds

Hedge funds are often allocating, ah, they're allocating other people's money. And the decisions that they make in that allication process are not necessarily value maximizing tor their clients. A friend of mine runs a 25 billion dollar hedgon portfolio. He walks in and says, i can give you between one and two billion dollars were patient investors were procedous to have. Even if he just picks the average funds, he's going to do 200 basis points better than everybody else because he's cutting out at least half of the fees.