There's a lot of competition out there when it comes to stock investing. Hedge funds (hedge fund news) are looking for other asset classes with more inefficiencies to exploit. So what to make of a London firm's plans to start up a hedge fund that bets on sports?

The Galileo fund, to be run by a firm called Centaur, will trade in football, racing and tennis on Betfair and other online exchanges that facilitate "in-running," hosting markets betting on events already in progress. Business Insider notes that a soccer-only fund has already launched. This is an interesting idea, and the managers may be hoping that the novelty of the idea will attract people willing to pay a 3 percent management fee in addition to a whopping 30 percent performance fee. 

The fund would like to open itself to American investors starting next year, according to CNBC, which notes that Mark Cuban floated the idea not too long ago. But he gave up quickly. I doubt we'll see any U.S. firms follow suit. 

For more:
- here's the CNBC article

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