Polarization between big asset raisers and the rest
Starting hedge funds has never been easier and there are no signs - on the basis of last year's activity or anecdotal evidence this year - that it is slowing down in the US or anywhere else in the world. What does seem to be happening, however, is a polarization of the market.
Experienced managers who have split with their existing firm are still finding it relatively easy to attract money as are well established brand names that launch second, third or fourth products. However, start-ups without an overwhelmingly obvious pedigree are struggling to reach critical mass.
To some extent this has always been the case with start-ups, but the polarization is more extreme today than ever, according to research by Absolute Return, which conducted an extensive survey of investors and start-up managers.
Another significant trend is the move by investors away from new...