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Your Elegant Portfolio Vs. The S&P

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Private Equity Equity Private has joined the Robot Revolutionaries in criticizing hedge fund fees, and managed to draw plenty of angry emails for that. You see, the super smart people who design amazing models supposedly uncovering value where no man has seen value before don’t like to hear that they might not deserve their fees.
Miss EP responds:

Hedge fund clients are not, I suppose, particularly impressed with the quantitative elegance of a manager's portfolio. For the most part, and aside from wanting to preserve diversity, they are interested in returns. They are, after all, in business to make money, not to fund creative correlation discovery projects that under perform the market. We are dealing with pension funds, not with theorists that derive utility from investing in some sort of aesthetic beauty in portfolio design.

Un-American [Private Equity]