Good point. However, as I understand it Vanguard's funds have < 0.2% management fee, so hopefully smaller than .35, e.g.
https://investor.vanguard.com/etf/feesBut you're right. If manager charges 0.5% and fund charges 0.2% I'm still losing 0.5% of principal and 0.2% of my gains per year.
I don't see a reason for hedge funds. In my mind those are folks who have a proprietary edge on the market due to location, information, or experience.
To me, private equity ("PE") are folks who know how to reshape companies.
I spent a fair bit of time working w/ and for and sort of as a VC - that is a fun lifestyle but their risk adjusted and fee adjusted return is not impressive:
http://www.industryventures.com/2017/02/07/the-venture-capit...
The weighted average of table "Early Stage Venture Returns" shows about 2.5X on money with an assumed period of 10 years.
That's about 10%. When I invested $400k in venture capital in 2000 [timing...] it was worth $250k total return by 2018 - so not as great.
But you're right. If manager charges 0.5% and fund charges 0.2% I'm still losing 0.5% of principal and 0.2% of my gains per year.
I don't see a reason for hedge funds. In my mind those are folks who have a proprietary edge on the market due to location, information, or experience.
To me, private equity ("PE") are folks who know how to reshape companies.
I spent a fair bit of time working w/ and for and sort of as a VC - that is a fun lifestyle but their risk adjusted and fee adjusted return is not impressive:
http://www.industryventures.com/2017/02/07/the-venture-capit...
The weighted average of table "Early Stage Venture Returns" shows about 2.5X on money with an assumed period of 10 years.
That's about 10%. When I invested $400k in venture capital in 2000 [timing...] it was worth $250k total return by 2018 - so not as great.