Maybe it is just an attrition thing, but I sort of think it is indicative of the shell game that is modern finance. I have excerpted only the lead of the article:
Zombie Update: the silent hedge fund apocalypse (gated link)
Dan McCrum, FT Alphaville, 19 June 2016 (hat tip: NC)
More hedge funds have closed in the last decade than were open for business at the start of it, according to industry numbers from HFR.
A total of 9,000 hedge funds and fund of funds have liquidated since the start of 2005, almost as many as HFR estimates exist now: 10,150. At the end of 2004 there were around 7,500 funds offering to manage cash.
The figures are a reminder of the transient nature of such high fee investment vehicles, which on average survive for only five years. The rapid turnover adds to questions about how such vehicles can be suitable stewards of capital for large long term investors such as pension funds.
More hedge funds have closed in the last decade than were open for business at the start of it, according to industry numbers from HFR.
A total of 9,000 hedge funds and fund of funds have liquidated since the start of 2005, almost as many as HFR estimates exist now: 10,150. At the end of 2004 there were around 7,500 funds offering to manage cash.
The figures are a reminder of the transient nature of such high fee investment vehicles, which on average survive for only five years. The rapid turnover adds to questions about how such vehicles can be suitable stewards of capital for large long term investors such as pension funds.
Interesting question for the Financial Times at this late stage of the game.
Note that I could post Chinese related stories like this forever. They are in a bigger mess than us.
Note that I could post Chinese related stories like this forever. They are in a bigger mess than us.
No comments:
Post a Comment