Hedge Funds

Gloomy Gross says funds "overpriced"


PIMCO bond guru Bill Gross has long been an outspoken critic of hedge funds as risky and a sometime market nuisance. And in a recent market commentary Gross took aim at alternatives again, but for a different reason.

Looking at the liberal use of leverage and high fees associated with hedge funds, Gross had this to say: "So if you are thinking about a hedge fund to bolster your portfolio returns, give it a long think. They're risky and they're generally overpriced. You can do better elsewhere or even on your own."

In his commentary, Gross decried what