Twilight of Hedge Funds?

In the New York Post, Carleton English notes that more hedge funds shut down last year than in any year since 2008. Not only that but hedge fund openings dropped 25% to 729.

Might this represent the peak of the hedge fund industry? After all, there are more hedge funds than there are Taco Bells. I suspect the industry has reached a tipping point where investors are no longer willing to pay high fees for low returns.

As with most any field, it helps to be the biggest player. Outside those lucky few, it will be a tough road for marginal players.

Don’t feel too bad for hedge funds. They still run about $3 trillion.

Posted by on March 20th, 2017 at 10:14 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.