Bloomberg Businessweek

A Hedge Fund That Shares the Risk

A veteran investor says money managers should feel the pain of clients’ losses

Steve Diggle got rich by trading other people’s money. Now he’s trying to upend the very business model that made him wealthy.

Once co-head of a $5 billion hedge fund that was among Asia’s largest, Diggle quit the industry eight years ago to manage his own money. From the sidelines, he came to recognize that the $3 trillion industry was rigged: Investors were paying exorbitant fees for subpar returns while managers earned huge sums for amassing assets.

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