Simon Lack on the 'Hedge Fund Mirage'

So many hedge funds, so little alpha.

This week on our Masters in Business radio podcast, we speak with Simon Lack of SL Advisors LLC, and author of “The Hedge Fund Mirage: The Illusion of Big Money and Why It’s Too Good to Be True. Lack previously sat on JPMorgan Chase & Co.’s investment committee, allocating more than $1 billion to hedge-fund managers. He founded the JPMorgan Incubator Funds, two private-equity vehicles that invested in new hedge funds.

We discussed the challenges of finding those rare managers who generate above-market returns, or alpha. He places the blame for poor hedge-fund performance squarely on the professional investor class. Surprisingly enough, these investors allocate capital without sound information and display excessive willingness to chase last year’s hot fund.

You can hear the full show, including the podcast extras, on iTunesSoundCloud and Bloomberg. All of our earlier podcasts can be found on iTunesSoundCloud and Bloomberg.

Next week, we speak with Yuval Noah Harari, author of “Sapiens: A Brief History of Humankind” and “Homo Deus: A Brief History of Tomorrow.”

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

    To contact the author of this story:
    Barry Ritholtz at

    To contact the editor responsible for this story:
    James Greiff at

    Before it's here, it's on the Bloomberg Terminal.