A full-blown restructuring is under way in the hedge fund world – in what is still a young industry subject to intense Darwinian forces. The shake-out will be severe and the casualty list has been lengthening by the day.
On the positive side of the ledger, it seems highly likely that huge opportunities will exist in a much less crowded, smaller and nimbler industry. But they will only be available to those that can survive through this period of pain.
The whole landscape is changing. There will be profound transformation in fund structures, fee levels and through the creation of different types of vehicles to cater for the different requirements of different types of investors – and for different types of investment opportunities in different asset classes and strategies with different degrees of liquidity.
The withdrawal of investor capital – and of investment bank...
