Hedge funds are all the way back.  Capital is once again flowing into hedge funds.  In the wake of the financial crisis we noted the relative success of hedge funds, in that they worked pretty much as advertised.  A minor tiff erupted this week on how it is that the goals of hedge funds have changed over time.  What were once free-wheeling vehicles have become bigger and much more institutionalized.  In the process management fees, vs. performance fees, have become a more important part of the deal for hedge funds managers.  We are surprised that more pressure hasn’t been put on hedge fund managers to cut fees, but investors seem sanguine about performance post-financial crisis.  In today’s screencast a look at the state of the hedge fund industry.

Items mentioned in the above screencast:

Hedge funds are raking in assets.  (Focus on Funds)

The curious case of hedge funds during the financial crisis.  (Abnormal Returns)

Leon Cooperman defends hedge funds.  (Dealbook, Clusterstock)

Is there still a role for hedge fund of funds?  (Institutional Investor)

Size vs. performance.  Not surprisingly hedge funds maximize fees not returns.  (All About Alpha)

The transition from prop desk to hedge fund is turning out to be more difficult than previously thought.  (Reuters)

Daily price chart of Och-Ziff Capital Management (OZM).  (Finviz)


This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.