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Hedge funds are not the sexy investments they used to be




A trader works on the floor of the New York Stock Exchange on January 2, 2013 in New York City.
A trader works on the floor of the New York Stock Exchange on January 2, 2013 in New York City.
Spencer Platt/Getty Images

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Think of the words "hedge fund" and your mind goes to yachts, summer beach houses and limousines. But here's a dirty little secret: Hedge funds on the whole under-perform far less sexy investments like mutual funds.  

Sheelah Kolhatkar of Bloomberg wrote the cover story for the current issue of Businessweek.  It's called Hedge Funds Are for Suckers.  She tells us about how these investment vehicles earned their reputation, and why they are no longer living up to it.