International Herald Tribune – David Shaw, founder of the world’s largest hedge fund firm, said investment returns probably would worsen because of all the money pouring into the industry.<\/p>\n
“There’s an enormous amount of capital now chasing a smaller amount of investment opportunities, so it’s made it easier for people to go into business but harder to make a profit once you’rethere,” Shaw, 54, the chairman of D.E. Shaw, said Tuesday. “It’s a much more difficult environment” than when the company, which is based in New York and manages more than $20 billion for clients,was started in 1988, he said.<\/p>\n
The industry’s assets have more than doubled since 2000 to $1.1 trillion and the number of funds has doubled to about 8,660 in the past five years, according to data compiled by Chicago- basedHedge Fund Research.<\/p>\n