FierceFinance – Not too long ago, equity hedge funds pretty much had to offer some sort of “edge” to attract clients. In the wake of the SAC Capital insider trading scandals, the word has been defined more by the most negative connotations. To put it bluntly, “edge” strikes some as a euphemism for illegal insider information, the type that SAC Capital got in so much trouble with.
“Hedge funds dealing in equities have long promised ‘edge’ to justify their exorbitant fees. Few had more of it than SAC, which, perhaps not coincidentally, also charged the highest fees—up to half the profits it generated for investors,” according to The Economist.
