10X has shied away from alternate asset classes, such as hedge and private equity funds. Among our key concerns: high fees, poor transparency, complexity and trading restrictions. Admittedly, some of these concerns had an anecdotal basis, but not anymore. Simon Lack’s exposé of the hedge fund industry (The Hedge Fund Mirage) supports our ‘prejudice’ with insider insight and hard numbers. His conclusion: yes, hedge funds have created a huge amount of wealth, but almost all of this has gone to managers rather than investors. Which raises the question whether upping the local prudential limit on hedge funds, as permitted by revised Regulation 28, is really all that prudent.