Wow. That's all I can say after reading this article in Business Week quoting the recent forecast from Goldman Sachs ( GS ) Private Wealth unit. Goldman Sachs Group Inc. ( GS )'s private- wealth-management unit expects hedge funds to return an average of 4 percent to 5 percent over the next five years as the industry struggles amid low interest rates. "Everybody hopes to get the five hedge funds, all of whom are going to have 15 percent returns," Sharmin Mossavar- Rahmani, chief investment officer of Goldman Sachs Private Wealth Management's Investment Strategy Group, said at a press briefing today. "People need to be more realistic." This is amazing. Hedge funds typically charge 2% a year for management fees, plus 20% of gains. Plus, your money gets locked up with restrictive provisions dictating specific timing and procedures required in order to get it back. So a 4 to 5% annual return for the next 5 years is extremely significant, as forecasts go.