| Topic Name: |
Hedge Fund-Dot coms of the 21st Century |
| Message Name: |
I agree with you |
| Date Posted: |
01/25/2002 |
| In Reply To: |
There are just too damn many hedge funds out there without sustainable business models/longevity of performance to justify inflows of new funds to grow the business. Until a hedge fund reaches the 500 million market, it is a little bitty fish that will get eaten, regardless of a good 3 year performance. Seems to be the fashionable thing to do in the last 2 years, like dot coms in the mid to late 90s... |
| Message: |
I think that most of these hedge funds will not work out. However, I think when a hedge fund hits 100 million, they are in good shape. The ironic thing is that all these supposedly bright people are leaving good jobs to start a fund and only end up managing maybe 10 million dollars. What these people should do is get together and then pool there resources so they have more money. I think teh dot com analogy is alse, but in the end, 70% of the hedge funds started recently won't be around in 3 years because if people don't raise the money they thought they could, then the riches are just not there for them.
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