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From Kirsten Bischoff, Opalesque New York:

Its little wonder that mega funds like Appaloosa are considering investing into other managers. David Tepper recently commented to MarketWatch that Appaloosa is planning to return money to investors so the firm's hedge funds don't get too big to run profitably.

The mega hedge funds, as we learned with the release of AR magazine's billion dollar club survey of last week are receiving the bulk of investor inflows. In the US the top ten largest hedge funds hold over $300bn worth of the assets. Meanwhile, these large firms are starting too show evidence of performance drag, turning in performance gains that have dragged the market by 2%-3% in the first two months of 2011.

Alternative Asset Management's Megalio Vision Fund, is currently listed with BarclayHedge for having returned over 300%+ returns since February 2009 (150%+ annualized). The fund, which is very small at under $5m in assets is a short term, trend following fund, which by its own accounts is high-risk as a single market strategy investing in the DAX market volatility as an asset. According to marketing......................

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