> If investment managers are so good at investing why don’t they just make money for themselves instead of trying to get people to invest with them?
The good ones do.
Citadel Securities, Renaissance, Jane Street, HRT, Jump, consistently do 50%+ annual returns over the past 15-20 years. They obviously don’t accept outside investor money.
Now, hedge funds that accept outside money like DE Shaw, Bridgewater and shit, yeah, they barely outperform S&P500 after their fees.
Then at the bottom, you have financial advisors who underperform S&P500 after their fees, but these advisors provide emotional support, so that’s what you’re paying for.
> The good ones do.
I mean, there isn't any evidence other than heresay.
> consistently do 50%+ annual returns over the past 15-20 years
That is only if you consider high-frequency trading investing. Which is very hard to, because on traditional investing timescales HFT is delta-neutral.