At the time, some market experts questioned whether the industry could continue to charge hefty fees — a manager typically receives a substantial portion of the fund’s annual appreciation — for such uneven performance.
After all, hedge funds were supposed to protect investors against market volatility, not subject them to it.
Then the bottom fell out of the industry, handing even top hedge funds double-digit percentage losses.
Try this one out: Dyirbal, an Australian aboriginal language, has a category balan which contains women, fire, dangerous things, non-threatening birds and platypuses.
When Morningstar groups 83 funds together in the category “long/short equity,” they’re telling us “hey, all of these things have essential similarities.
As soon as we announce a category, we start judging things in the category based on how well they conform to our expectations of the category.
If we assign a piece of fruit (or a hard-boiled egg) to the category “upscale dessert,” we start judging it based on how upscale-dessert-y it seems.
Real estate has historically been an indispensable avenue to wealth and a key mode of diversification.