The Incredible Shrinking Hedge Fund

You’d be forgiven for thinking the hedge fund industry might be starting to rebound. Industry assets are at a record $3.2 trillion this year, and a brand-new firm just brought in an unprecedented $8 billion.

But the reality isn’t so rosy. Inflows into funds, on the whole, are non-existent and the number of startups has slowed to levels not seen for nearly two decades.

Melting Ice Cubes

Once high-flying powerhouses run by David Einhorn, Bill Ackman and Alan Howard are mere shadows of their former glory after posting years of returns that ranged from uninspiring to downright awful. John Paulson has crashed so badly and seen assets plummet so far that he’s largely left managing his own money.

Source: Bloomberg

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