Earlier this month, I presented an introduction to hedge funds. Today, CNN is reporting that hedge fund managers want to repair their image among the investing public.
In an attempt to do so, some mutual fund companies are set to bring hedge-like funds to everyday investors. One such fund is the DB Hedge Strategies Fund. This fund will charge a 1.95 percent annual fee and a 0.25 percent administrative fee. That’s less than some actively managed mutual funds, but still pretty pricey. The minimum to invest is $50,000.
Rydex offers a fund of hedge funds, an index that follows the S&P’s Hedge Fund Index the same way other index funds follow the S&P 500. Take a look at their tables; the difference in performance between the “with load” and “without load” is big.
The CNN article goes on to list some others.
Updated February 6, 2012 and originally published May 27, 2005. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
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Luke Landes founded Consumerism Commentary in 2003 and has been building online communities since 1990. Luke, also known as Flexo, has contributed to PC World Magazine, US News, Forbes, and other publications. 
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2.2% in fees seems pretty steep.
fivecentnickel.com
It’s out of my price range, but I tend to go for the funds with less than 0.50%. For a hedge fund, 2.2% is low if it is the full story. The typical hedge fund charges 1-2% of assets plus around 20% of profits.