TradeBlog (TM) .net / Personal Finance Blog

Crestmont Research: The top hedge fund myths

The tone from Crestmont - which, according to its web blurb, says it “develops provocative insights on the financial markets and on the hedge fund industry” -  is a tad tetchy.

“Never has an industry so extensively studied by “experts” produced such a surplus of myths,misunderstandings, and half-truths. Many of these myths could easily be clarified with a call or two to knowledgeable industry professionals. Too often, a seemingly logical statement that sounds-good-when-you-say-it-fast becomes accepted conventional wisdom despite the reams of evidence weighted against it.”

[ PDF ] Hedge Funds: Myths and Facts / » Crestmont Research

So here, according to Crestmont are the top myths about hedge funds:

Top 3 fund managers earn over $1bn

The combined earnings of the world's top 25 hedge fund managers of almost $15bn exceeded the national income of Jordan last year and three individuals took home more than $1bn, according to an industry survey.