Money managers under the microscope
The once-booming hedge fund industry has shrunk rapidly over the past 9 months to roughly $1-$1.4 trillion, as investors have pulled out their cash following some pretty lacklustre returns.
However, according to Mark Kary, chief executive of Polar Capital, the industry never really deserved to have grown to the best part of $3 trillion in the first place.
He told today’s Reuters Hedge Fund and Private Equity Summit in London that while hedge funds had become a “fashion item” in the good times, when it comes down to it there simply isn’t enough talent to support an industry of $3 trillion.
“This went from a $400 billion business to a $3 trillion business in the space of seven years and I just don’t think there’s enough talent around to be able to do that,” he said.