NYT – More than ever, the biggest investors are entrusting their money disproportionately to the largest hedge funds. They may discover that bigger isn’t always better.
The size fetish has meant that the share of industry assets held by firms with more than $1 billion under management has risen gradually from about 75 percent in 2006 to about 82 percent at the start of this year, according to Hedge Fund Intelligence. And the trend seems to be accelerating. In the second quarter, 92 percent of net inflows went to managers with more than $5 billion under their control, Hedge Fund Research reckons.
