Barry Ritholz, The Big Picture, has a great post on underwhelming hedge fund performance, here…
Here is one of 5 theories he lists (do read the whole thing):
”1b. Fat head, long tail: A variation of this is the distribution of alpha among managers; it may still be with the handful of those few geniuses. Jim Chanos of Kynikos Associates has suggested that in the 1970s and 1980s, only 20 to 30 managers were creating alpha out of the hundreds of hedge funds; today, there might still be 20 to 30 reliable alpha generators, but out of 11,000.”
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