Buffett attacks hedge fund fees

Warren Buffett, the world’s second-richest person, on Thursday stepped up his criticism of hedge funds, calling their fee arrangements “grotesque” and cautioning shareholders against unrealistic return expectations. In the legendary investor’s much-anticipated annual letter to Berkshire Hathaway shareholders, he slammed “Wall Street’s pied pipers of performance” and said it was “folly” for investors to pay ever-greater commissions and fees in an attempt to increase returns. In a nod to his advancing age Mr Buffett, 76, and his board have already chosen, but not publicly identified, a successor as chief executive. He planned to hire one or more understudies with the potential to succeed him as the company’s investment mastermind, he said.