What are hedge funds, and what social functions do they serve?

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  1. Pierpont Morgan died in 1913 with a fortune of about $1.5 billion in today’s dollars. For his sway over Wall Street he was nicknamed “Jupiter,” after the Roman king of the gods.

In 2013, four hedge fund managers took home over $2 billion as income each, with the top manager pocketing $3.5 billion. How did a few asset managers earn more money in a single year than Pierpont Morgan did in his whole life?

It’s not always easy to tell. Hedge funds are secretive firms that have long invited suspicion. Their activities have provoked no less than Bill Clinton, who bemoaned the undue power of “a bunch of fucking bond traders” whose whims determined the success of his policy programs.

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