With the stratospheric salaries that hedge fund managers are earning these days, there may be more to mutual fund managers' interest in employing hedge fund strategies than performance. Sure, they claim they're turning to riskier tactics to deliver better returns and distinguish themselves from the competition. In fact, many experts believe that mutual funds' use of hedge fund strategies is a growing trend and that the lines between institutional and retail investment strategies will blur.
But the salaries that hedge fund managers are earning are mind-blowing. Certainly, they haven't escaped the attention of mutual fund portfolio managers-and they could potentially lead to more lucrative deals for mutual fund executives who look to join the elite.