Yes this was clear—imho you underestimate how sophisticated investors in hedge funds (what you call “clients”) are. The best hedge funds charge way more than 2% and it can still be a rational investment. “Value to society” is not a criterion that matters. “Value to investors” is.
There are many mutual funds that charge over 1%, add little value and target unsophisticated investors. That’s the case where I buy your point.
Yes this was clear—imho you underestimate how sophisticated investors in hedge funds (what you call “clients”) are. The best hedge funds charge way more than 2% and it can still be a rational investment. “Value to society” is not a criterion that matters. “Value to investors” is.
There are many mutual funds that charge over 1%, add little value and target unsophisticated investors. That’s the case where I buy your point.
Fair, It seems you know more about this than I do! Thanks!