We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Magda Wierzycka’s brutal takedown of the hedge fund industry created a predictable degree of controversy. The announcement that her company, Sygnia, had closed its hedge funds has provoked a furious response from the industry, which she described as "a management-fee racket". Elsewhere in the paper, Giulietta Talevi details the industry’s response. And our colleague, Tim Cohen, has been covering the phenomenon of fees more broadly. Reading Wierzycka’s column, I was most intrigued about her timing. Had she only discovered this now? After all, the debate about whether hedge funds’ performance justified their high fees has been going on for a while. It was a decade ago already that Warren Buffett placed a $1m bet that simply placing money in a low-cost index tracker would deliver superior returns to those from hedge funds, with their typical 2% management fee and additional 20% of profits earned. Buffett won handsomely, with his pick, the S&P 500, gaining about 126% over a period of 10...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now