Record sums have been thrown at a handful of launches by
It is one of the great ironies of 2004 that, despite sorry
investment returns and evidence all around of industry
maturation, investors have heaped more money than ever before
into new hedge fund launches. However, what is even more
interesting is that most of the money is going into a handful
of über start-ups that have raised much of their money
from a new breed of investors.
A small number of start-ups have always attracted the bulk
of the money raised by new funds, but this year has been
exceptional with a record number of billion-dollar launches in
the U.S. For many seasoned hedge fund investors, who in the
main have shunned these über start-ups, the trend is a
sign of collective insanity. But others aren't so sure. They
say it is a rational response to changing market...