If hedge fund “overcrowding” was bad for returns, is recent “undercrowding” going to be good?
Feb 24th, 2009 | Filed under: Performance, Analytics & Metrics, Today's Post
Not long ago it was commonly assumed that the hedge fund business was getting too crowded – that alpha opportunities were being spread too thin, and that hedge funds were essentially becoming a victim of their own success.
Now, of course, the industry is going through a period of consolidation and has (temporarily, it is hoped) decreased in size. So is the opposite true? If hedge funds were a victim of their own success in the past, will they now be the beneficiaries of their own demise? More…
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