Don't hedge funds still take the very high 2% fee even if they don't make any profit? Doesn't the 2 and 20 structure just incentivize making risky investments (where you either win big and take the 20% or lose big and take the 2%). Hedge funds seem like a terrible investment these days given how ridiculous the fees are.
Why hasn't competition brought the fees down when hedge funds aren't consistently beating the market?
Why hasn't competition brought the fees down when hedge funds aren't consistently beating the market?