System Trader

Shrouded in mystery and even more misunderstanding, hedge funds have always been very limited for the average investor. Whether for regulatory reasons or because of high capital requirements. But with the revolution started by ETFs, they are now available to the masses.Today, with literally a few dozen dollars in your pocket, you can invest in the same things as hedge funds.The hedge fund industry is burdened with one big sin: high management costs – just like in classic investment funds.This is probably the main source of their numerous failures. But something has been changing here for years, paradoxically partly thanks to the ongoing passive revolution (i.e.: index products). Management costs are falling, and according to Morningstar, the current average management cost among hedge funds is approximately 1.6% per year. Yes – it is still a lot if compared to passive stock ETFs, where the cost may be lower than 0.1% per year.For several years, strategies implemented by hedge funds in the ETF package have bee