dmv wrote:

Obviously, the writers have no idea what a hedge fund is — they probably assume that it’s where all the stock brokers work. What they should say is that love isn’t like a non-diversified traditional long-only fund.

In reality, love is exactly like a hedge fund. Love is a limited partnership structure (LP), it takes a large initial investment, and is largely unregulated. Frequently, it uses an aggressive strategy, relying on large directional bets and substantial amounts of leverage. The plan is to generate significant alpha (using the Lipper Love Average as a benchmark) but it is not uncommon to see a hedge fund or a love relationship with an unsuitably low Sortino ratio, indicating that it has strayed from it’s raison d’etre. This is a hedge fund (marriage) destined for fund outflows (divorce).

Love is relatively illiquid, such that if it takes on large speculative investments, and develops into something like a live-in relationship or marriage, there will be a lock-up period.

Awesome, an infographic! You know it's somehow related to the NYT when...

-janelane