That's a lot of assets to be dumped on the markets.
In one of the more pessimistic portraits of the future of the hedge fund industry, one pension fund investor predicts that half of hedge funds are headed for extinction.
Peter Carey, senior investment officer for alternatives at the $153 billion New York State Common Retirement Fund, says the industry will shrink by as much as 50%, but what’s left of it will present investors with a host of new opportunities.
“There’s going to be a lot less hedge funds in the industry—anywhere from 30% to 50%—and I tend to err on the 50% side,” he said, speaking in front of an audience at the Asset Allocation Forum, sponsored by Catalyst Financial and FINalternatives in New York yesterday. “That’s a healthy development because there’s a lot of folks out there that shouldn’t be in this business, or at least be shouldn’t be charging the fees that they’re charging.”>>>MORE