Hedge Funds manage their data better than they manage money

The New York Times online reported that most Hedge Funds, all though most show huge gains and little risk, are mostly lying in their actual data. They are consistently only waiting to report on huge gains, and then they "backfill" the old data where they lost money. Burton G. Malkiel, a professor of Economics and author of our wonderful textbook, commented on hedge funds saying that most only wait to report any data until they acutally have any sort of income.

Hedge funds are large funds that appeal mostly to clients. They began in the mid-1980s and have duobled in size since 1990, going from a 50 billion dollar fund to over a trillion dollars in investment. They pursue both short- and long-term funds and generally have substantially higher fees that average investment strategies.

Most hedge funds have a tendency to cease, with roughly 10% a year ending without further notice.