Hedge fund managers are incentivized to take a lot of risk in order to gain large profits. There's no real downside to taking that risk with somebody else's money and then losing it all, they just go off and maybe start a different hedge fund. The SEC likes to shut the barn door after the horse's life.
You have different options when it comes to investing. Phil discusses the realities of mutual funds, hedge funds and indexes. For show notes and more information visit www.ruleonepodcast.com
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