Proposal for New Hedge Fund Fee Structure

From Barry Ritholz and The Big Picture via  Investingchannel is this piece on a Proposal for New Hedge Fund Fee Structure:

One of my pet peeves is the way that insiders  — whether corporate CEOs, hedge fund managers, or elected politicos — capture compensation (or credit) for normal cyclical gains they had little or nothing to do with.

This is the approach favored by the Crony Capitalists –t hose people pretending to be free market participants, and who merely pretend to be creating value. They are taking credit for structural successes that would have occurred with or without them. What they are actually doing is capturing value, not creating it — and then transferring it from its true owners (shareholders/investors) to themselves…