Fund managers and private banks are bringing an increasing number of hedge fund-lite products down to the level of the investing masses, typically in a mutual fund structure. Is a hedge fund in your future, and in your long-term investing future’s best interest?
Financial advisors are split on the trend. Wall Street racking up high fees by offering unnecessary products to less savvy investors isn’t an approach that sits well with Wes Moss, chief investment strategist at Capital Investment Advisors, an Atlanta-based investment management firm with $1.5 billion in assets under management.
“I think it’s a loser’s game, because you can get safe diversification in other ways than loading yourself up with 3 percent annual hurdles before you even break even,” he said. “It’s a seven-layer dip [of fees]. How is anyone ever going to stay apace with the market itself?”
Many other investors have weighed in on the topic with mixed views. Read more on CNBC.