Are Hedge Funds Evil? Ha! Of Course They Are!
Hedge funds remove risk. As a result, no one really invests in anything: They bet, then cover their bet with another bet.
If they win, they win big but if they lose, they get much of their “investment” back.
Because of that, they feel more entitled to tell a business what to do than if they stood to lose everything.
If they feared they’d lose everything, they would be more cautious and display more due diligence in their investing, and once they found a person or company to trust, they’d be more reluctant to interfere with them for fear of ruining everything.
Without that genuine fear of losing all in a risk, they don’t really risk anything; indeed, they see themselves as owners and expect to see a return no matter what.
Hedge funds need to be more tightly limited and controlled, supervised by the government, and severely regulated.
They should exist only for investment pools, that is to say pools of capital that is loaned out anonymously with anonymous returns, same as a bank only for investors with much more capital to invest than ordinary depositors.