Is the lifecycle of the hedge fund industry over?

Numerous academic studies have shown that small funds outperform in their first few years of existence before they become victims of their success and subsequently attract too much money to perform in the investment strategy initially intended. Recent history shows that an increasing number of launches are failing to gain traction and end up liquidating or long-standing managers converting into a family office after returning outside investor capital following disappointing returns (before they start outperforming again with their own money). One of the principal reasons is that the ...