The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Overgrown and full of deadwood

Size is a well-known impediment to fund-management sprightliness and profitability. As traditional institutional investors leap belatedly on the bandwagon, that's become as true of hedge funds as of staider operations. The likely outcome: significantly declining returns. By Mike Steinberger.

Riding the Tiger

A speculator's latest lesson

Hedge funds have become fashionable in the strangest places. For geopolitical insights, Tiger Management's Julian Robertson now turns to a board that includes Margaret Thatcher and Bob Dole. When not rescuing wayward former Soviet republics or jousting with Asian potentates, Quantum Fund founder George Soros takes to the pages of The Atlantic Monthly and other highbrow journals to inveigh against the perils of postmodern capitalism. Paul Tudor Jones pals around with Bill Clinton, crusades on behalf of the environment and is often touted as a possible candidate for political office himself. James Cramer currently stars in a shoe commercial.

But perhaps the strangest new fans of the hedge fund are traditional institutional investors. Over the past eight months, major institutions have placed as much as $3 billion with them - a drop in the bucket by their standards (at last count, US institutions alone had $13 trillion in assets), but enough to account for almost 30% of the new money flowing into funds. College and university endowments, considered the shrewdest of the lot, are leading the charge.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree