In 2012, the hedge fund Clive Capital lost 8.8% for its investors. In return for this negative performance, the fund paid its top partner $33.5 million.
In 2011, Bloomberg reports, Clive Capital lost 10% for its investors. In return for that negative performance, the fund paid its top partner $60.8 million.
Hedge funds as a class have had a shitty decade, compared to other, much cheaper investments. Yet rich people still continue to pour their money into hedge funds. It is highly likely that even if you are very rich, you are unable to select hedge funds what will consistently justify their own high prices. All in all, you're probably far better off putting your money into a low-cost index fund than into a high-priced hedge fund.
What we can all agree on is that being a hedge fund manager is the greatest hustle ever devised by mankind.