[mynameismonkey]

My read is that the fund managers created an additional $2B in exceeded expectation/value, then billed 97% of that created value. In other words, stay home, don't use these guys, don't pay them $2B, get the same returns. That's how I understand the point.

[jongala]

Yeah that's how I'm reading it but then I guess the question then becomes whether the projections were made specifically with a hedge fund strategy in mind or if they would have been the same for a more conventional investment approach.

I'm not trying to discount the take-away that the fees are very high regardless of the projection basis, but I think it's important to understand the difference. If these criticisms are not clearly reasoned or communicated, I think that fuels the perception in the financial community that these complaints are hysterical and unfounded and should be dismissed.

[tedunangst]

There's no guarantee that using other managers would have resulted in the same "expected" returns.