How do fund managers make money?

Is it right to make money at expense of vast masses?

• Is it right to help create an impending doom for your bonuses like bankers/traders do? Why do we have these high frequency trading? Is it there just to create money for themselves?  Are these hedge fund managers solving any problems somewhere or they creating money for their investors there by creating problems? You make money, but millions of people suffer somewhere....Is this the correct thing to do?

• Answer:

  You are making the explicit assertion here that the financial industry makes their profits at the direct expense of millions of people. Finance is not a zero-sum game. You ask these questions about the value of high frequency trading and hedge funds and then seem to already have your answer. It is certainly true that not everyone who works in finance has the most ethical motives or behaviors, but the industry as a whole is a massive net positive for society. Do you really believe that the world would be better off without the financial system?