Last year, the Standard & Poor’s 500-stock index jumped 14 percent, while the average hedge fund returned less than 13 percent, after investment fees, according to Hedge Fund Research in Chicago.
A little education on hedge funds for those not in the know, correct me if I'm wrong. They are different than mutal funds in that they can borrow capital to invest and are not as regulated as mutal funds. They also charge very large fees, typically 2% of what you invest plus 20% of your profit. Also, it takes alot of capital to buy into a hedge fund, these are for rich people. They can charge high fees because they can deliver high returns. Read the article and see how much some of the managers make, enough to run the National Park system. The rich get richer. Even better when you think about the US cutting capital gain taxes, so you can make this money tax free, and the option is not open to most of us.