02-21-2023, 11:30 PM
What’s the point of hedge funds?
<!-- SC_OFF --><div class="md"><p>Why do millionaires and billionaires invest their money in actively managed hedge funds? Everyone knows that beating the market is impossible and you’ll never get better than 6 percent above inflation every year, so why pay a massive premium only to make less money than passively managed index funds? Are there tax loopholes? Can someone please explain this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/cubsbullsbearsz"> /u/cubsbullsbearsz </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/117t0eq/whats_the_point_of_hedge_funds/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/117t0eq/whats_the_point_of_hedge_funds/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>Why do millionaires and billionaires invest their money in actively managed hedge funds? Everyone knows that beating the market is impossible and you’ll never get better than 6 percent above inflation every year, so why pay a massive premium only to make less money than passively managed index funds? Are there tax loopholes? Can someone please explain this?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/cubsbullsbearsz"> /u/cubsbullsbearsz </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/117t0eq/whats_the_point_of_hedge_funds/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/117t0eq/whats_the_point_of_hedge_funds/">[comments]</a></span>