Some people think that hedge-fund managers are leaders in reforming public education.
The fact is, they are just very-highly paid thieves.
Matt Taibbi is a busy investigative reporter. He has a new book but last fall he wrote an article in Rolling Stone about the raids on pension funds, led by hedge fund managers.
“Hedge funds have good reason to want to keep their fees hidden: They’re insanely expensive. The typical fee structure for private hedge-fund management is a formula called “two and twenty,” meaning the hedge fund collects a two percent fee just for showing up, then gets 20 percent of any profits it earns with your money. Some hedge funds also charge a mysterious third fee, called “fund expenses,” that can run as high as half a percent – Loeb’s Third Point, for instance, charged Rhode Island just more than half a percent for “fund expenses” last year, or about $350,000. Hedge funds will also pass on their trading costs to their clients, a huge additional line item that can come to an extra percent or more and is seldom disclosed. There are even fees states pay for withdrawing from certain hedge funds.”
Read more: http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926#ixzz2yz0OCTVs
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