Hedge Fund Fraud Attorney

Hedge Fund Fraud Lawsuits

One thing Warren Buffett was right about was telling investors the smartest thing they can do is just buy a no-load S&P 500 index fund. Why? Because nobody really knows much of anything about the market anyway. Hedge funds are actively managed investment pools run by people who think they can outsmart the market. They use “non-traditional” investments, mostly pretty crazy stuff the average investor has never even heard of; they don’t have to register these funds with the SEC so long as they don’t advertise. With little to no oversight, these “managers” often charge ridiculous fees or commissions to keep investors in, and penalize them for withdrawal within a certain period of buying in. They often also offer precious little information on how they will invest your money, and can misrepresent important aspects of the fund’s overall investment strategy. And, they also frequently use borrowed money or “leverage,” hoping to amplify gains, which also exposes investors to heightened risk. If Warren Buffett thinks most of these people are idiots, shouldn’t you?