{"id":3785,"date":"2005-12-30T00:00:00","date_gmt":"2005-12-30T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-are-the-new-mutual-fund","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/12\/2005\/hedge-funds-are-the-new-mutual-fund.html","title":{"rendered":"Hedge Funds Are the New Mutual Fund"},"content":{"rendered":"<p>Slate &#8211; This was the year of hedge funds. The largely unregulated pools of private capital\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dgenerally available only to institutions and the rich\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dhave proliferated nearly as fast as adulatory articlesabout them. Hedge-fund managers have historically been the Garbos of the asset management world: They want to be left alone by the media, by the public, and above all, by the <a target=\"_blank\" href=\"http:\/\/www.sec.gov\/\">Securities and Exchange Commission<\/a>. But in recent years\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dand especially in 2005\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dthey&#8217;ve had a coming-out party. Aggressive hedge-fund managers are seeking to shake upmanagement and push restructurings at blue-chip companies like <a target=\"_blank\" href=\"http:\/\/money.cnn.com\/2005\/12\/02\/news\/fortune500\/timewarner_icahn\/?cnn=yes\">Time Warner<\/a> and <a target=\"_blank\" href=\"http:\/\/www.thestreet.com\/pf\/stocks\/nicholasyulico\/10253017.html\">McDonald&#8217;s<\/a>. Others, not content to flip stocks, have taken the reins at well-known companies, as <a target=\"_blank\"href=\"http:\/\/www.searsholdings.com\/govern\/board.htm#EdwardLampert\">Edward S. Lampert<\/a> has done at Sears.<\/p>\n<p>  As the chart accompanying this article <a target=\"_blank\" href=\"http:\/\/money.cnn.com\/2005\/11\/22\/markets\/hedge_funds\/\">shows<\/a>, the hedge-fund industry has doubled in the last four years; there  are now an estimated $1 trillion in assets in 8,000 funds. Staid institutions like university endowments and state employee pension funds are plunging cash into hedge funds. And investment banks  have rolled out funds that allow merely well-off people to invest in them.<\/p>\n<p>  Are hedge funds the next big thing in mass investing? And if so, will they suffer the same lousy fate as the last big thing in mass investing\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dmutual funds? In the 1990s, the mutual-fund industry  doubled. Millions of new investors, lured by excellent recent performance, thronged into funds. Today, according to the <a target=\"_blank\" href=\"http:\/\/www.ici.org\/\">Investment Company  Institute<\/a>, there are 8,000 U.S. mutual funds with $8.5 trillion in assets. Yet every year, the majority of them underperform broad market indexes\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dand charge fees for doing so. It turns out the  mutual-fund industry expanded well beyond the ability of mutual-fund managers to run the money effectively. Today, mutual funds are a clunky business that relies heavily on marketing, survives on  management fees, and fears new competitors.<\/p>\n<p><a href=\"http:\/\/www.slate.com\/id\/2133357\/\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Slate &#8211; This was the year of hedge funds. The largely unregulated pools of private capital\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dgenerally available only to institutions and the rich\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009dhave proliferated nearly as fast as adulatory articlesabout them. Hedge-fund managers have historically been the Garbos of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-3785","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3785","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=3785"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/3785\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=3785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=3785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=3785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}