When is a Hedge Fund Not a Hedge Fund?

Dane Hamilton is a stickler when it comes to what is and what isn’t a hedge fund:

Some funds that call themselves hedge funds really aren’t, because they don’t sell short, use leverage or buy derivatives, but are basically long-only funds with lucrative hedge fund fee structures aimed at wealthy investors.

Sounds a hell of a lot like a long-only hedge fund to me. But now I feel almost sorry for all those poor HNWIs who’ve invested their millions in a so-called "hedge fund" only to discover that it isn’t, because it hasn’t been levering up its CDOs of CDSs. They’re going to feel dreadful when they find out.

This entry was posted in hedge funds. Bookmark the permalink.