[foldingmoney]

>Main street (retail investors, taxpayers) have had enough of this, and a lot of anger is directed at institutional investors for always getting the easy money and the bailouts at their expense. They want to see the game applied fairly, such that when the bets go sour, they go bankrupt and don't get bailed out like in 2008. In the 2015 CHF forex crisis, many brokers went bankrupt overnight. That's what should happen to Melvin, and to anyone who takes the stupid risky bets that don't work out.

Hedge funds mostly invest client money, not their own. Yes they take pretty hefty fees but they're trying to make money for their clients, who typically are main street.

[onlyrealcuzzo]

Are they? Do many people invest in Hedge Funds with their 401ks? Aren't the vast majority of regular people's 401ks tied up in Index Funds?

My understanding was that hedge funds started mostly as a way to be more protective of wealth - i.e. you were sacrificing some potential gains to be more certain you wouldn't lose more than x%. Hedge funds have a lot more focus than that now - but (my understanding at least) is that hedge funds still are mostly for people with high net worths.

[foldingmoney]

My understanding is that most hedge funds get the bulk of capital from institutional investors, e.g. pension funds.