Disliked{quote} If the legal agreement is air tight, the investors have little recourse (esp. if they are accredited). In fact, this is one of the biggest criticisms against the HF and CTA industry. The investors take all the risk, the managers get all the fees.Ignored
Most managers that believe in themselves and their strategy have their own dough next to their investors in the fund. So they are at risk just like the investors, and many times more so because they have more of their net worth in the fund than do the investors.