Bloomberg Brief recently caught up with Nixon speechwriter, actor and Clear Eyes shill Ben Stein to pick his brain on the state of the hedge fund industry. Stein’s thoughts? Investors are getting robbed on management/performance fees and the only way a hedge fund can beat the market is via insider trading which Stein wants no part of in case anyone was wondering.

“This has been an absolutely monumental recent period for event-driven arbitrage, so that’s what I love,” Ben Stein said in an interview. He dislikes currency hedge funds because the strategy is “too treacherous.” “I don’t have any confidence that the people I’d be working with can outperform any kind of index of it,” he said…Retail investors should invest in exchange-traded funds or mutual funds that replicate hedge fund returns, Stein said, because they charge lower fees and have better returns.

“These simulacra of hedge funds are going to completely change that world,” he said. “that is the wave of the future. If you’re getting the same results as you get if you’re paying 2 and 20, why not go with the $5,000 minimum investment and the fee of $100?” The federal government’s insider trading investigation is also another reason to avoid investing in traditional hedge funds, he said. “Financial theory tells you that you cannot beat the large indexes unless you are getting inside information, and I don’t want to be part of anything that involves inside information.”

Related: Ben Stein: Merrill Lynch Is An Astonishingly Well-Run Company

17 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (17)

  1. Posted by JBEV | April 26, 2011 at 3:36 PM

    ‘Stein wants know part of in case anyone was wondering.’

    Bess, can I be your editor?

  2. Posted by JBEV | April 26, 2011 at 3:37 PM

    (may I be your editor)

  3. Posted by NakedShort | April 26, 2011 at 3:39 PM

    Choose a different way to invest—Vanguarding™

  4. Posted by Guest | April 26, 2011 at 3:41 PM

    You may kill yourself.

  5. Posted by guest | April 26, 2011 at 3:42 PM

    Financial theory tells you that you cannot beat the indexes with inside information if you work at UBS

  6. Posted by AmericasMostSmartestModel | April 26, 2011 at 3:56 PM

    This is the same guy who went on CBS and Fox News in 2007, saying the economy was “still very strong,” and the “smart money” was “now trying to buy — not sell — as much distressed merchandise” in mortgages as possible. Stein appeared with other financial experts dismissing worries of a coming credit crunch.

    Lose 50-70% to save .8% in fees. Stein, you’re so smart, I wish I was as smart as you.

  7. Posted by Spotswood | April 26, 2011 at 3:58 PM

    You may eat your own head.

  8. Posted by Zilla | April 26, 2011 at 4:02 PM

    Man would I like to win that guy’s money.

    –Throwback Win Ben Stein’s Money Fan

  9. Posted by Ersatz Random Commenter | April 26, 2011 at 4:03 PM

    Trolling for putang in Taco Bell is the new killing it.
    -Not random commenter, but a fan of his work-

  10. Posted by AIG Canadian Economy Analyst | April 26, 2011 at 4:28 PM

    They don’t sell putang at Taco Bell. Putang is more of a Canadian comfort food. It is a dish consisting of French fries topped with fresh cheese curds, covered with brown gravy or sauce and sometimes additional ingredients. Maybe some Taco Bells in Canada have it but I doubt the Penn Central Taco Bell sells putang.

  11. Posted by Horvath | April 26, 2011 at 4:29 PM

    That picture makes me want to do naughty things to a Canadian.

  12. Posted by Jimmy Kimmel | April 26, 2011 at 4:40 PM

    He’s just pimping his new Comedy Central show: “Win Jim Simon’s Money” – when will he ever give it a rest.

  13. Posted by guest | April 26, 2011 at 4:51 PM

    anyone? anyone?

  14. Posted by Guest on the Border | April 26, 2011 at 5:03 PM

    Awesome.

  15. Posted by Guest | April 26, 2011 at 7:51 PM

    efficient-market hypothesis

  16. Posted by Guest | April 26, 2011 at 7:51 PM

    efficient-market hypothesis

  17. Posted by guest | April 26, 2011 at 9:37 PM

    if i wake up with pack of labatts and head to the rink for a day of curling, by the time i get back in the truck to home, ill take just about everything, especially the putang…