| Topic Name: |
Future of Hedge Funds... |
| Message Name: |
just you watch and see... |
| Date Posted: |
05/18/2005 |
| In Reply To: |
the people in the industry are smart enough to raise assets without competing on price. the ones who try and compete on price, cant raise assets, and will probably be incapable to producing returns. long-only absolute return funds may cut prices and run a shit load of money to an index+ strategy, but considering the size of asset base you could run like that, they could charge less and still make a lot. |
| Message: |
Those were the same arguements made for long-only funds only 10 years ago...
Hope I'm wrong, but hedge fund pricing can't defy microeconomic theory with entry/exit.
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