Hedge Fund Managers? Who Needs 'Em

Being a hedge fund manager used to be the kind of job you did after a stressful life in banking. Now, not only are there fewer such roles, but they're as taxing as ever. Indeed, the entire money-management world is being turned on its head as investors realize that passive strategies are cheaper, and often perform better.

That's resulted in billions being yanked from hedge funds, which have been closing in droves. Brevan Howard Asset Management is the latest, with investors asking to pull about $1.4 billion from the firm's main hedge fund, people familiar with the matter said. The industry globally saw a net $15 billion exit between January and March, reducing assets under management to $2.86 trillion from $2.9 trillion, Hedge Fund Research said earlier this month. In Asia, investors redeemed $2.9 billion in the first quarter, the most in seven years, according to data from eVestment.