What you get for your 2 and 30

So lets say you are insanely well connected, insanely rich or insanely lucky.  You may be able to invest some of your money with a big hedge fund like ESL- Eddie Lampert's highly regarded fund.  These funds- will usually charge between 2 and 2.5% of your capital as an annual fee. In addition, they will take between 20 and 50% of the profits for their coffers.
What do you get for these huge fees?  Lampert has only a handful of stocks in his fund.  Right now- according to a recent filing- he owns SHLD (sears- down almost 30% this year) , MOT (Motorola down 20% this year), AZO ( Autozone down about 18% since January 1), and AN (Autonation- a real standout- down only 10% this year).  He added C during the second quarter  (citigroup is down 20% from the lowest price it traded at during the second quarter.

So you don't end up owning a diversified portfolio, or one that is truly hedged.  Just a handful of bad stocks- which if you were stupid you could buy on the open market.

All hail this legend of the financial world.