By Neil O'Hara
Photographs by Fredrik Broden
With even legendary hedge fund managers struggling to raise capital, and returns once again taking a beating, it may be hard to remember when there was too much money chasing hedge funds. The crash of 2008 ended all that, as hedge funds lost a third of their capital through a combination of losses and redemptions from investors. The end of the boom shone a harsh light on the era's brightest trends—from investing in hybrids or alternatives like private equity, to the "hedge fund lite" products such as portable alpha or 130/30s.
These days managers like Paul Tudor Jones and Steve Cohen—to mention a couple of the most prominent—are pushing the industry back to basics. "People are focusing on a couple of things: Where do we have an advantage, and how do we articulate that to investors?" says Paul Roth, founding partner...