There are honest hedge funds. Not many of them launched in the last 10-15 years or so, but alot of the older guys have solid, performing, honest funds.
A hedgie is just someone who puts your money out there at higher risk. That is it. The problem is that many funds (mine included) have to trade offshore or you will get RAPED by the IRS. Allow the same tax protection as an IRA/Keogh/annuity, and you could demand more oversight.....
Of course the "oversight" of the SEC in the last 10 years or so has been an absolute complete freaking joke. I swear, they might as well put up a flashing neon sign saying "CROOKSRUS" and those nimrods at the SEC would not know their butts from a hole in the ground.
If you ever are at an event and some SEC rep is speaking, you can stop the show by asking him to tell you about the most successful prosecution of regsho they have ever done.
to tell you about the most successful prosecution of regsho they have ever done.
My guess, zip, zero, nada?
Most whores are more honest, they at least admit they will screw you out of your money.
Any wonder why SEC regulation [sic] fails to reduce or uncover the really big corruption (Bear, Merrill, Madoff, etc.)? What SEC staffer (most are lawyers) will seriously investigate a potential employer who will pay them a mid-six figure salary when they leave the SEC? Remember, Madoff's son's dropped the dime while the regulators were counting paper clips.
The regulatory bodies are systemically corrupt. The revolving door is unlike anything you will ever see at the Pentagon. It (the regulatory scheme) is an old boys and girls club to ensure the lawyers, traders and managers in New York (and elsewhere) continue to get rich on your money.
It is pathetic.