I don’t think it actually matters whether they make smart decisions or not though, they put a ton of money in and regardless everyone goes along and they make a profit from it.
Hedge funds almost universally under-perform index funds. They don’t dictate anything, they’re just objectively bad at everything except marketing. They make their profits on fees they charge their investors.
I don’t think it actually matters whether they make smart decisions or not though, they put a ton of money in and regardless everyone goes along and they make a profit from it.
They dictate the market rather than follow it
Hedge funds almost universally under-perform index funds. They don’t dictate anything, they’re just objectively bad at everything except marketing. They make their profits on fees they charge their investors.