[charlesdenault]

Isn't this an issue of paying capital gains tax instead of income tax?

The amount of money they earn is arbitrary. If the deal is 2/20, and the manager performs (hence the 20), they're rewarded. That seems fair to me. If you think 20% is too high, find a different fund?

[InclinedPlane]

Did you read the article? Some hedge fund managers earned enormous pay even when their funds lost money.

[charlesdenault]

Yes. But correct me if I'm wrong, but the article says that the managers made money because their firms are so large. Thus, they earned their 2% management fee regardless of performance. Should they be regulated? Won't the market correct when investors pull their money from the fund if they continue the losses?

[whatok]

Of the three firms listed in the article, two of them have had significant redemptions in the past year and one of them has returned all outside capital. This says that Och-Ziff has had $4.2bn in redemptions during the first nine months of 2015 [0]

[0] http://www.bloomberg.com/news/articles/2015-12-02/hedge-fund...