Side-By-Side Management May Favor Hedge Over Mutual Funds

The hedge fund industry has seen substantial growth over time as high-net worth individuals have flocked to this investment class. Its attractive structure and compensation have also attracted some of the best money managers in the world, often at the expense of the mutual fund market. To help minimize the impact of this shift, institutional investment advisory firms have argued that for mutual funds to maintain talent they should be managed by people also running hedge funds. In this article, we'll show you how to decide if it is beneficial for you to have one firm handle both your hedge and mutual funds together. (For related reading, check out A Brief History Of The Hedge Fund and A Brief History Of The Mutual Fund.)