Absolute Return's annual take on tomorrow's superstars
Gone are the days when a one-man hedge fund shop without a fancy pedigree could get into the hedge fund business and wait patiently for capital to come knocking at its door. Yes, the rules of the game have changed. The increased presence of institutional investors has led to the safety of brand name investing, as have the spectacular frauds of recent vintage. On top of that, the new registration requirements of the U.S. Securities and Exchange Commission have placed a disproportionate burden on smaller startups.
As a result, even though the global industry has swelled to $1.5 trillion, more and more of the money resides at the top, with smaller managers facing an even harder job than ever to get noticed.
And while there's something to be said for the Darwinian theory of natural selection in hedge funds, it's clear...