Gyroscopic Investing

This interview had lots of interesting stuff in it about problems with momentum strategies, hedgefunds etc:
http://seekingalpha.com/article/322101- ... -investing:

"Between 1998 and 2010, even on favorable assumptions, hedge fund managers earned an estimated US$379bn in fees, out of total investment gains (before fees) of US$449bn. In other words, they took 84% of the investment profits their funds made, leaving just 16% for the investors."

stone wrote:

"Between 1998 and 2010, even on favorable assumptions, hedge fund managers earned an estimated US$379bn in fees, out of total investment gains (before fees) of US$449bn. In other words, they took 84% of the investment profits their funds made, leaving just 16% for the investors."

What's that saying? ... "Good work if you can get it."

I wonder how much money Swedroe has made for his clients over that same time period compared to what he took in fees, including the money spent on his books and other advice channels.

As I recall, Swedroe's basic investment allocation returned 0% in each of the last three years.

I did think that interview had interesting stuff in it though. I do take your point about him being on the same gravy train. I was struck by how he said that even money managers needed other managers because when dealing with their own money even the pros succumbed to irrational emotions. That sort of is a cheer for a fee paying bonanza and the opposit of Harry Browne's don't trust anyone else with your money rule.