

The 25 highest-paid hedge fund managers made a combined $21 billion in 2013 - applecore
http://www.nytimes.com/2014/05/09/opinion/krugman-now-thats-rich.html

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coutud
This is highly misleading. This money is mostly not from fees, but simply the
return made on their own wealth invested in their funds.

See
[http://www.bloombergview.com/articles/2014-05-06/billionaire...](http://www.bloombergview.com/articles/2014-05-06/billionaire-
hedge-funders-made-money-the-old-fashioned-way)

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georgeecollins
You have a point but that article is also a little misleading. It assumes
every hedge fund manager has 100% of his wealth in the funds. To be fair the
writer admits that he is just guessing but that is a high guess.

Also, the S&P had its best year in 16 years last year, so you would expect
people to do well on their investments this year. The thing that Warren Buffer
is very critical of is that hedge funds get a lot of fees even in years that
they do really poorly. That sets them up to win big when the market does well.

There is an illusion, cultivated by instutional investors and the people
ripping them off, that instutional investors are very savvy. It is not always
true.

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waterfowl
so none of em made as much as the whatsapp guys? bummer wall street, you gotta
keep up.

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lquist
I know you're joking, but you're comparing the one-off sale of an entire
business to (very possibly repeatable) annual income.

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waterfowl
Oh sure but they GENERALLY do an amazing job of what they sell("give us lots
of money and we'll get you more back") in order to pull down that
compensation. The people who hire them(i.e. deposit in their fund products)
seem to be cool with the fees(meaning it is "worth it" to the high net worth
crowd vs. vanguard or w/e...whether that's rational and based on returns or
just prestige of "I have my money with Cerberus"). If it weren't "worth it"
then either people would use the alternative lower fee investment vehicles or
someone would "disrupt" the space with a cheaper hedge fund offering better
returns.

Of course it can all fall apart(LTCM lol)

Plus the huge factor of their personal capital generating a sizeable chunk of
this return at the same rate as their fund investor's capital.

