http://blogs.reuters.com/reuters-dealzone/2008/04/07/tough-times-for-hedge-funds/ Behind the deals and deal-makers Mon, 09 Nov 2009 21:54:41 +0000 http://wordpress.org/?v=2.6.2 http://blogs.reuters.com/reuters-dealzone/2008/04/07/tough-times-for-hedge-funds/#comment-333770 allaboutalpha.com: AllAboutAlpha.com Fri, 11 Apr 2008 02:31:44 +0000 http://blogs.reuters.com/reuters-dealzone/2008/04/07/tough-times-for-hedge-funds/#comment-333770 [...] “Tough Times for Hedge Funds”: Reuters provides another prime example.  Says this promotional story for its hedge fund summit this week: “Many investors expect the $1.8 trillion industry’s estimated 10,000 funds to be winnowed down by a few thousand in a few years. Funds that oversaw nearly $4 billion in assets have already closed their doors in the first quarter of 2008.”  Only a couple of problems: A) The number of players in any new industry is always “winnowed down” as it matures and says nothing about the overall size of the industry and B) $4billion x 4 quarters = $16 billion = the lowest attrition rate in 3 years… [...] [...] “Tough Times for Hedge Funds”: Reuters provides another prime example.  Says this promotional story for its hedge fund summit this week: “Many investors expect the $1.8 trillion industry’s estimated 10,000 funds to be winnowed down by a few thousand in a few years. Funds that oversaw nearly $4 billion in assets have already closed their doors in the first quarter of 2008.”  Only a couple of problems: A) The number of players in any new industry is always “winnowed down” as it matures and says nothing about the overall size of the industry and B) $4billion x 4 quarters = $16 billion = the lowest attrition rate in 3 years… [...]

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