The combined earnings of the world’s top 25 hedge fund managers of more than $14bn (Â£7.49bn) exceeded the national income of Jordan last year and three individuals took home more than $1bn, according to the biggest annual industry survey.
Here is the article, which illustrates the role of powerful capital markets in promoting income inequality. Here is an NYT piece.
What we see are the fearless super-rich having the resources and the liquidity to bid away the equity price premium, plus grab extra profits on the side. Why should they worry about risk? The result is improved resource allocation. The losers are future investors, who now, if they buy, pay higher prices. That means people like me, wealthy enough to be buying equities but not fancy enough to do anything but buy and hold. The investment question is whether the price run-up is mostly over, or whether it has just begun to take off.