Hedge Funds Charge Too Much, Returns Down: Asness

The video discusses the criticisms and performance of hedge funds, particularly their lack of hedging and high fees. It examines their performance in bull markets, the impact of short-term investing, and the issue of crowded trades. Despite criticisms, hedge funds offer valuable strategies like arbitrage and trend following, but need better packaging for investors.

What are hedge funds criticized for according to the speaker?

• Providing too many uncorrelated returns

• Not hedging enough and charging too much

• Being too transparent

• Not charging enough fees

What is a challenge mentioned in the hedge fund industry?

• Excessive transparency

• Overcrowding in trades

• Lack of growth in the industry

• Too much long-term investing

What does the speaker suggest about evaluating hedge fund performance?

• Focus on short-term results

• Ignore market trends

• Evaluate over a longer period

• Rely on anecdotal evidence

What positive role do hedge funds play according to the speaker?

• Offering low-cost investment options

• Providing arbitrage capital and systematic trend following

• Guaranteeing market-beating returns

• Ensuring full transparency in operations

What is a criticism of the hedge fund industry as a whole?

• Being too affordable

• Not being fully hedged and lacking transparency

• Offering too many investment options

• Being too focused on long-term strategies