I have been fairly fascinated by hedge funds for quite some time. I began studying them earlier last decade. It has been an intriguing field for investigation for a number of reasons:
1) Alpha Generators: In the early days of hedge funds, they created a ton of Alpha. Like pre-expansion sports leagues, there was a limited number of talented managers, and most were superstars.
2) Brilliant Characters: The managers of some better-known funds are brilliant and insightful investors. Their Alpha generation suggests as much. But they are also characters in the fullest sense of that word: Quirky, charismatic, compelling, mercurial. Once you become fabulously wealthy, you follow a different set of rules from the rest of us.
3) Contradiction Between Performance and AUM: Over the past decade, that elusive Alpha has gone away as AUM has ramped up to all time highs.
I was reminded of this when I saw this headline yesterday: Hedge Fund AUM Hits Another Record High In Q1 2014.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.