Wait a Second. Didn’t we fish there already?
May 14th, 2007 | Filed under: 130/30The wildly popular 130/30 strategy can best be described as a long-only fund with a hedge fund component. So why didn’t it sell that well in its earlier incarnation as a hedge fund with a long-only component?
As we have discussed a few times on these pages, the “dramatic growth” of the hedge fund industry is actually highly concentrated in the top few hundred hedge fund companies. In fact, by some measures the sub-billion dollar hedge fund industry has been stagnant in recent years (in aggregate). Why? Unless you enter the industry with an existing reputation garnered from a prop desk, asset management firm other hedge fund, raising money isn’t as easy as the media makes it out to be.
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
[…] All About Alpha doesn’t think 130/30 strategies are the “worst of all worlds.” […]