Kiplinger – Hedge funds are coming under fire, with recent articles in The Washington Post and BloombergBusinessweek. In this column written six years ago, when hedge funds were flying high, I laid out what I didn’t like about them on principle: their lack of transparency, liquidity and government regulation, plus their high management fees. I still feel the same.
You should give your money only to investment managers who can clearly explain their investment strategy, who will give you back your money whenever you need it, who are subject to regulatory oversight, and who charge reasonable fees. And never put all your money in a single investment fund, even a mutual fund from a respected fund family. The bottom line: Know what you’re investing in, spread your money over several asset classes (stocks, bonds, real estate, etc.), and use numerous money managers and index funds.
