Why should the fund management industry welcome the use of hedge funds? Discuss.?

Question

Why should the fund management industry welcome the use of hedge funds? Discuss.?

Answer 1

Hedge funds have incentives to perform which some other funds lack. Hedge fund managers are compensated for having assets under management but they get paid MUCH better if they perform well.  Many have advanced unique strategies not available through mutual funds or ETFs.  Hope this helps. Here is an article on hedge fund strategy options: http://richard-wilson.blogspot.com/2008/...

hope that helps.

- Richard

Richard Wilson

Hedge Fund Group (HFG)

http://hedgefundgroup.org

Answer 2

Sounds like a test question. Look it up.