Hedge Fund Survey Shows Established Names Have More Chance of Success

Filed in archive Hedgetalk on February 16, 2007

In a story I was writing for Hedgeco earlier this morning, I came across an interesting press release relating to all the predictions I've been hearing about the apocalyptic downfall of hedge funds & so on & so forth.

The study I was writing about showed that even though new hedge fund launches in the U.S. have slowed now for the second year in a row..."A closer look at the alpha-pack points to two ongoing themes: Billion-dollar megalaunches are alive and well - but only for the right pedigree. Seven of the top ten launches were new funds by established players, more evidence that the big, established names will continue to get bigger."

"The trend for larger megalaunches in the past few years is likely to continue if institutional investors - pensions and endowments more so than funds of funds - continue to wade into hedge funds."

It's interesting to see that one of my theories is somewhat correct, at least in the short term. Here s a link to the original story I wrote.

If anyone has any comments on the longevity of hedge funds, or opinions on any new investment trends or fads, please feel free to comment or contact me, as I'm interested in finding out more.