Though the industry has suffered, hedge fund manager still bring home millions every year. According to Bradley H. Alford, this largely has to do with the fees charged to pensions, endowments and other investors.
“The industry’s fees and performance are so out of whack it’s unbelievable. Fifteen years ago, you got double-digit performance for those fees, but last year, the S.& P. was positive and hedge funds were negative. There’s no alignment with the fees.”