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)
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)