Hedge Funds May Lose 25% of Assets, Blackstone’s James Says

  • Industry faces ‘day of reckoning’ that will be painful: James
  • Hedge-fund fee structure is hard to justify, billionaire says

Hedge Funds May Lose 25% of Assets, Blackstone Says

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The $2.9 trillion hedge-fund industry may lose about a quarter of its assets in the next year as performance slumps, said Tony James, Blackstone Group LP’s billionaire president.

“It’s kind of a day of reckoning that we face here,” James said Wednesday in an interview with Bloomberg TV Canada’s Pamela Ritchie at a conference in Toronto. “There will be a shrinkage in the industry and it will be painful. That’s going to be pretty painful for an awful lot of places.”