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He said scam with regards to the fees and transaction costs of outside managers.
Managers will trade your money all day long - they collect commissions in a variety of different ways. First there is direct, then they receive payment for order flow by dealers. He's right, there are so many uninformed traders out there. The comissions dilute your overall return, and therefore with them included they dont outperform, with them excluded they do, but uninformed traders don't realize the true extent of the management fees and commissions.
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