It is all about liquidity…
Over the last few years, Wall Street’s leaders have changed from independent thinkers to drones marching to Washington’s drumbeat. The many who criticized the Street in the wake of the credit crisis, fueled by the failure of Bear Stearns, Lehman Brothers and Merrill Lynch, scared the Street into mediocrity. The resulting companies are massive behemoths bogged down by regulation and led by fearful supervisors who see little room for independent thinking. A giant sucking sound has replaced innovation over the last seven years, but instead of Mexico filling the void, as Mr. Perot believed, hedge funds are doing the job. Hedge funds, you see, are the last great bastion of […]
The death of the hedge fund industry has been highly exaggerated.
January is death-to-the-hedge-fund-industry month, according to the popular press. That’s right, folks, you heard it here first: The hedge fund industry, according to the popular press, CNBC, FOX Business, Bloomberg and, of course, the Wall Street Journal and Financial Times have all written the eulogy for he hedge fund industry. “Death to Hedge Funds” is the headline that keeps on giving. It seems that no matter what happens — good performance, bad performance, more regulation, less regulation, inflows of capital or outflows of capital — the industry is dying, according to all of these esteemed media outlets. In fact, the industry is far from dead. And reports of its demise […]