Goldberg Global
Funds aren't for everyone and its easy to see why some people are sceptical - I'm sure many reading your comments will share at least some of your views. However, you only need look a little closer to see the opportunities they bring for you and how you can minimise some of the risks you mentioned.

Until recently such funds were the preserve of the rich. Most of the people running the funds listed on the Channel Islands Stock Exchange have a track record of running such funds and delivering healthy returns to their investors. That track record reduces the probability of them not being trust worthy and also evidences how good the returns can be.

You asked "How can you trust someone else to invest your money better than you?"
There are many reasons that the fund I invested in should provide a better return than I would get by simply investing the money myself. They include:
1) Economies of scale. (Multi million pound fund.)
2) Minimal pay during funds life to the team that run it. They have their reward by taking 25% of profits.
3) Key members of the team sit on boards for companies that supply raw materials. They therefore acquire those raw materials at a very good price.
4) Team have in depth knowledge of local market and many of them are based there. (I don't have that same level of local knowledge throughout the Baltic countries. Nor am I able to manage my acquisition as effectively and cost efficiently from the UK.)
5) Value is added to building projects at every stage. (Changing land use adds value. Getting planning permissions adds value, etc.) Adding value equals more profit. I'm not able to add significant value to any acquisitions I make abroad. I'd be reliant on house price inflation and healthy rentals to make a buck.

The fund I'm with aims to deliver over 30% return (after tax etc) per annum and that assumes no house price inflation or leverage. With house price inflation and leverage the return should be greater, indeed the Fund Manager has a track record of delivering above expectations.

Finally, you mentioned there is zero risk to those running the fund. I can see where you are coming from, but don't agree. Yes they won't be out of pocket now, but their reputation will be damaged and that adversely impacts their ability to make money in the future. (Would you invest in a fund run by a manager that has a track record of losing money?)