Here's Another Interesting Chart

The market has two kinds of funds, one for the regular people, the Mutual Funds and one for the sophisticated investor, the Hedge Fund.

To qualify to invest in a Hedge Fund you must be an "Accredited Investor" (click the link for the rules straight from SEC). Here are the bullet points:

-$1,000,000 in net worth
-A single person must have made $200k in income in each of the two most recent years, if you have a spouse it's $300k and an "reasonable " expectation for the same income in the current year or a trustee with assets of at least $5 million dollars.

Here's what you'll pay to be a hedge fund client IF THEY ACCEPT YOU (more on that in a minute).

-Between 1.5% and 3% of your investment under management in fees
-Typically 20% of any gains you might make, but some as high as 50%.

Because the two main kinds of hedge funds are allowed either 99 clients or 499 depending on how the fund was set up, don't expect to be accepted with a $100k investment. They are looking for the big dollars since they have a cap on the number of investors.

So what could you expect to have made this year in the average hedge fund where some managers make over a billion dollars a year to manage said fund? Remember, these guys have access to everything and everyone, especially the "Expert Networks" which are essentially former CEOs, F_E_D officials and other people who have connections you and I couldn't imagine. To be honest, you really should think of Expert Networks as a shady, grey-ish area in which inside information flows from, that's the reality.

So, if you think you are having a rough year (and this is the most difficult market I've ever seen, but more importantly, some people I know (actually a person) who has been working on Wall Street since the 1950's and has created the original money flow indicators that Wall Street paid mucho bucks to lease, agree-THIS IS A HORRIBLE MARKET. However, with inside information and all of the hottest traders, here's what Hedge Funds did this year.



In other words, after fees of hundreds of thousands of dollars, the Hedge Fund industry on average couldn't even beat the S&P, so the clients could have bought a Vanguard S&P proxy fund and saved hundreds of thousands of dollars.