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Komfie Manalo, Opalesque Asia: Blackstone Group LP president Tony James has predicted a bleak future
for hedge funds, saying that the industry could lose as much as 25% of
its current $2.9tln asset in the next year, reported Bloomberg.
Speaking in an interview Bloomberg TV with Pamela Ritchie on the
sidelines of the annual
Canadian Venture Capital and Private Equity Association conference,
James said, "It’s kind of a day of reckoning that we face here. There
will be a shrinkage in the industry and it will be painful. That’s going
to be pretty painful for an awful lot of places."
Data from Hedge Fund Research has shown that the hedge fund industry lost an 1.8%
this year, while investors pulled around $15bn in the first quarter,
leaving a sea full of skeleton hedge funds in their wake, as investors,
eagerly seeking safer alternatives, felt they had waited long enough,
and pulled their support.
"We’re definitely worried about what’s going to happen in the hedge-fund
world right now," James continued.
Adding to James’ fears is his expectation that hedge funds will again
underperform the stock market during a bull run. He told Bloomberg,
"For a while that’s a good trade for them. But the longer that b...................... To view our full article Click here
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