In Londiwe Buthelezi’s article, “Hedge Funds Hope New Rules Will Make Them More Alluring” (February 28) she reported that these investment vehicles now have a standard means of measuring performance. This looks like a desperate attempt at respectability in order to stave off their deserved oblivion as investors eventually wise up. Knowing how well a fund has done in the past is of about as much use as knowing the winner of the 2.30 once the race is run. At least when you make your next bet, you’ll know the previous winning horse and jockey. When the rainmaker of an investment fund leaves, will you know the name and credentials of the replacement manager? I’ve no idea. Surprise me. Hedge funds are fighting a war against the supposedly boring index-linked, very low-fee variety. Even in the most sophisticated investment market of the US, hedge funds are getting their butts kicked. If this, for the moment, is not the experience in SA, then is this luck or expertise? Now here’s a challe...
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