Fidelity Dumps Blackstone's Hedge Fund For The Masses

Are hedge funds for the masses what the 99% needs to catch up to the 1%? According to Fidelity, absolutely not.

The Boston-based mutual fund giant just pulled the plug on Blackstone’s Alternative Multi-Manager Fund, a hedge-fund like investment with only a $2.5k buy-in, by taking out the nearly $1B of client’s money the firm had invested in it, Fortune reports.

It turns out hedge funds have underperformed the market every year since 2009, often by a lot—over the past three years hedge funds had average returns of just under 5% while the market pulled 16%.

And Fidelity isn't alone, over the past few months more and more institutional investors have been taking assets out of hedge funds. [Fortune]

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