Any successful investor needs to be able to change their mind when the facts change, and I hope I'm sensible enough to do so without drawing a line in the sand.
Hedge fund assets the last few years are the same or less than they were in '06-'07, when hedge funds demonstrated significant alpha. As a result, although the number of data points is thin, my sense is it's too early to tell. What seems a far more likely causation is the headwind created by low interest rates on hedge funds. I imagine if we saw rates up at "normal" levels and hedge funds still performed below expectations, that would be cause to re-evaluate. Until then, any sweeping conclusion can't be substantiated by facts, especially when many hedge funds have performed quite well in this period.
Any successful investor needs to be able to change their mind when the facts change, and I hope I'm sensible enough to do so without drawing a line in the sand.
Hedge fund assets the last few years are the same or less than they were in '06-'07, when hedge funds demonstrated significant alpha. As a result, although the number of data points is thin, my sense is it's too early to tell. What seems a far more likely causation is the headwind created by low interest rates on hedge funds. I imagine if we saw rates up at "normal" levels and hedge funds still performed below expectations, that would be cause to re-evaluate. Until then, any sweeping conclusion can't be substantiated by facts, especially when many hedge funds have performed quite well in this period.