According to Cooconnect’s Charles-Gubert “the golden age of alpha” is at an end while
industry experts expressed alarm at the dearth of investors allocating into
smaller hedge funds.
Hedge fund figureheads warned that the industry is unlikely
to regain its legendary money-making status anytime soon. “There are
approximately 8,000 hedge funds and alpha at the average hedge fund will be
less going forward. Between the 1980s and 2007, we had a golden age of alpha
but the industry is now a crowded field and I do not expect a return to the
1980s,” said William Michaelcheck, chairman and chief investment officer at
Mariner Investment Group, speaking at GAIM USA
in Boca Raton , Florida
This comes as the industry delivered negative returns in two
out of the last four years whereas 2012’s gains of 6.22% did not excite. The
situation has also not been helped by the growing regulation of the industry,
which some panellists complained was proving a distraction to managing money…..
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