[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Chamath Palihapitiya [@chamath](/creator/twitter/chamath) on x 1.9M followers Created: 2025-07-18 15:26:28 UTC The article below is about the CIO of the UC System ditching hedge funds after decades of poor performance. What he is saying is the dirty secret of most of finance: LPs (ie you) pay exorbitant fees and carry to ultimately return the market beta or worse! In other words, you’d be better off with a liquid basket of stocks and bonds. For the fund manager, it’s a great job if you can get it but the veneer has certainly waned over the past few years and the large pools of capital are waking up to reality. Expect fees and carry to shrink commensurately. His comments below: “Hedge funds are a fantastic business if you’re on Wall Street, and you can charge a great fee and then you can afford to buy all the art and the private jets and the amazing houses in the world,” he said. He added that UC Investment’s hedge fund positions had undermined its overall performance by introducing risks during market upheavals in 1999, 2008 and 2020. “In each of those three scenarios, hedge funds didn’t hedge us,” he said. “They exposed us to the opposite kind of risk, which actually meant they hurt us.” XXXXXXX engagements  **Related Topics** [alternative investments](/topic/alternative-investments) [fund manager](/topic/fund-manager) [stocks](/topic/stocks) [liquid](/topic/liquid) [beta](/topic/beta) [finance](/topic/finance) [Post Link](https://x.com/chamath/status/1946230094898335846)
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]
Chamath Palihapitiya @chamath on x 1.9M followers
Created: 2025-07-18 15:26:28 UTC
The article below is about the CIO of the UC System ditching hedge funds after decades of poor performance.
What he is saying is the dirty secret of most of finance: LPs (ie you) pay exorbitant fees and carry to ultimately return the market beta or worse! In other words, you’d be better off with a liquid basket of stocks and bonds. For the fund manager, it’s a great job if you can get it but the veneer has certainly waned over the past few years and the large pools of capital are waking up to reality.
Expect fees and carry to shrink commensurately.
His comments below:
“Hedge funds are a fantastic business if you’re on Wall Street, and you can charge a great fee and then you can afford to buy all the art and the private jets and the amazing houses in the world,” he said.
He added that UC Investment’s hedge fund positions had undermined its overall performance by introducing risks during market upheavals in 1999, 2008 and 2020.
“In each of those three scenarios, hedge funds didn’t hedge us,” he said. “They exposed us to the opposite kind of risk, which actually meant they hurt us.”
XXXXXXX engagements
Related Topics alternative investments fund manager stocks liquid beta finance