The NYT is reporting on a new study finds that the funds’ high fees make it unlikely that investors will improve their long-term performance by putting money into hedge funds.
The study, “Portfolio Efficiency With Performance Fees,” was written by Mark Kritzman, president and chief executive of Windham Capital Management, a money management firm in Boston. The article itself makes a couple of mistakes ("hedge funds typically become subject to greater regulation once they have more than a small number of investors"),
but according to the Times, Mr. Kritzman found that the investor should allocate nothing to the basket of hedge funds and everything to the two index funds.
