Hedge fund success not equal to performance for clients

“Star-struck investors have too often equated enormous financial success amongst managers with high returns for clients…Faulty or weak analysis, performance chasing, shortage of skepticism, and a desire to be associated with winners without proper regard for terms have all caused the sorry result.” 

Simon Lack from The Hedge fund Mirage 


No one wants to make  mistakes, so clients will often choose the biggest managers who have had success displayed in the news. This can be a significant hindrance to success.