Mainly because funds are scarce, they do less to preserve endangered species than do zoos in America or Europe.
"There is a recurring theme of poor communication, broken appointments, missing paperwork, overpricing, offers being withdrawn at the last minute because funds are no longer available, and bad workmanship, " he explained.
Most portfolios using only active funds will underperform portfolios of all index funds because active funds in most categories underperform.
The activity potentially harmed the pensions, endowments and other institutional investors that sank money into the hedge funds, because the funds were in essence paying bigger brokerage commissions to get the low rent and other perks, Galvin said.
Mr. Schwartz of ORG says he has put clients such as the Texas Municipal Retirement System and state funds in Maine, Indiana and Kentucky in opportunity funds in part because these funds responded to investor complaints that went beyond poor performance.
The bosses of funds benefited either indirectly, because the funds were given more money to manage (and thus more fees), or directly, because they invested in the hedge fund that was trading against the mutual fund.
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Buyout shops usually like to point out that American workers benefit when private equity funds score big returns because pension funds are some of the biggest investors in private equity funds.
In America three-quarters of onshore hedge funds have offshore clones, mainly because hedge funds with foreign investors, who are not required to pay taxes on their hedge-fund investments in America, would still need to file America's unwieldy tax returns if they invested onshore.
Because Pope funds the groups through his family foundation, he is able to take tax writeoffs.
Because their funds' assets far exceeded their liabilities, the companies took money out of their pension plans.
Factories and buildings are built because they have a use, not just because borrowed funds are easy to find.
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Arguably, they are also more secretive, because hedge funds at least buy publicly traded securities (if in complicated ways).
Because hedge funds were liquidating their office furniture and anything else they could lay their hands on to meet redemptions.
He added that previous rounds of funding had failed to make an impact because the funds were spread too thinly.
The odds against a widespread voluntary exchange have also worsened because hedge funds have bought Greek debt from European banks in recent months.
Because hedge funds are unregulated, managers are free to sell short, use leverage, and invest in illiquid securities--activities not open to mutual-fund managers.
Because hedge funds use a lot of borrowed money to magnify their bets, they are subject to rapid reversals: the history of the industry is littered with blowups.
But Matthew Tucker, head of fixed-income investment strategy at iShares, says the iShares yields are also lower because the funds mature in March versus December for the Guggenheim offerings.
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If the money is ultimately used decades later to pay postretirement medical bills, so much the better: The account is better than an IRA because the funds are untaxed.
Moreover, because hedge funds are so lightly regulated and often highly leveraged, their apparently superior returns are due, at least in part, to their taking on much more risk.
The RNLI, which runs the Grace Darling museum, said it was not in a position to bid for the medal because its funds were spent purely on saving lives at sea.
Investors elsewhere may know even less, because most funds based in Europe and Asia disclose only management fees, not other expenses, such as marketing costs, that are charged to fund shareholders.
Investors find them as safe and as liquid as bank deposits, but they pay a higher return, partly because mutual funds are not burdened by the high overheads that banks bear.
That's because hedge funds do better early on, when they are small, than later, when they have to find places to put a lot more money and are more likely to make bad guesses.
However, he said, because the biggest ETFs, like the SDPR Gold Trust, are physically backed, it could have an impact on the physical market because those funds then free up more supply which could pressure prices.
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And because hedge funds are under pressure in their traditional business, which is short-term arbitrage in liquid markets, they are attracted by returns from private equity potentially at least double what they expect from their usual activities.
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But most of the impact will be next year because infrastructure funds, even once the money is available, takes a long time to be spent as federal, state and local governments secure the necessary approvals and seek bids for the work.
If the database shows that certain corporations have given millions of dollars to physicians and hospitals across the country, does that mean that they sell questionable medications, and that these products in turn are prescribed or used only because of funds that pass from the industry to medical professionals?
Mozes and Orchard found that chasing hot hedge funds is a losing strategy because as those funds grow, they eventually have too much money to place into the strategy that made them successful.
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