Originally Posted by
AF OneWire
Not sure of your particular situation but I suspect they are returning your capital to you and that’s why it looks like you are beating the market and having tax loses. Warren Buffet won his million dollar bet that an S&P index would beat hedge funds. Every study I’ve read shows low cost index’s beating hedge funds.
Hedge funds make hedge fund managers rich (with your money), and give investors who want to feel fancy, something to talk about at the club. They don’t beat low cost index funds. That may change in the future, but right now you are just making your hedge fund manager and whoever sold you the fund rich.
I would recommend you talk to a professional if you have the assets to purchase them. Particularly if you have a large amount of money outside of retirement accounts. You are thinking of them as a mutual fund, which they are not. They are a tax avoidance tool. They don’t have a NAV or post 1099s.