Too much power in hedge funds' hands?

city debate: hedge funds and power

Ruben Lee, Oxford Finance Group

Everybody knows that hedges have their value, so there is no need for a complete hatchet job. Alpha males can pretend they have good growth skills, and deliver superior yields, and maybe a few do.

The more prevalent betas can claim that the key benefit of their hedges is to offer investors better risk diversification, without losing expected return. And of course, the top 20 hedge operators earn more than $100m compensation each.

So what's the problem? Nobody kno