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REDDIT

Why do hedge fund managers make so much?

F
Mar 15, 2025 · 14:17

Israel Englander, Steve Cohen, Kenneth Griffin, etc. I understand that directly it's because of the 2/20 fee they charge and the massive amounts of capital they have, but why do they have so much capital in the first place? Buffet once said: "the net result of hiring professional management is a HUGE minus". Couple this with the efficient market hypothesis and the difficulty of generating consistent returns, at it just doesn't make sense...