Money managers under the microscope
News and views on the asset management industry from Reuters and elsewhere:
Here’s the link to Terry Smith’s blog attacking the “unsupportable” practice of hedge funds charging their clients fees of 2 and 20 (2 percent annual and 20 percent performance).
Smith compares the maths that show a $1,000 investment in Berkshire Hathaway in 1965 (when Buffett began) would last year be worth $4.3 million, with a hedge fund charging 2 and 20.
News and views on the hedge fund sector from Reuters and elsewhere:
DE Shaw mobilises team to buy distressed assets of fund rivals – FT Traders in record bet against the euro – FT Galleon figure Chiesi stands by Rajaratnam – Reuters EU hedge fund regulation plans still risky: UK FSA – Reuters Britain need not fear a Greek tragedy, yet – Telegraph Australian single hedge funds return 20.81 pct in 2009 – HedgeWeek Berkowitz’s Fairholme likes more Berkshire Hathaway and healthcare – Seeking Alpha Pequot Capital’s Last Holding: InterOil – Seeking Alpha