Financial Standard – Monday, 21 Nov 2005 12:18PM – LA-based investment theory and practice guru Rex Sinquefield entertained, enlightened and provoked the audience at the FPA conference last week when he questioned returns made by hedge funds and called those who invest in them “stupidâ€Â.
“Many people buy hedge funds, especially rich people. It tells me that there is an almost endless supply of wealthy stupid peopleâ€Â.
The award-winning money manager drew on several academic research to suggest that investors are better off investing in passive or index funds to gain long term returns instead of hedge funds wherein virtually all of the gains are wiped out by high management, high turnover-related fees.
