The Financial Crisis Killed Hedge-Fund Performance
The industry never came back from the “Great Reset,” the huge sell-off during the first quarter of 2009.
It was the worst of times.
Photographer: Mario Tama/Getty Images
I have long been interested in hedge funds and their managers. We have regularly looked at issues such as changing fee structures, higher-than-rational expected returns, general cost and performance issues, and why investors keep shoveling money to the funds.
My Bloomberg News colleagues Katherine Burton, Melissa Karsh and Sam Dodge published an article last week, “The Incredible Shrinking Hedge Fund,” that is chock-full of charts and details about the sliding assets under management at funds, and the free fall in new funds even as total industry assets have hit all-time highs.