Dmitry Balyasny knows he lives in a glass house and says he
doesn't like to throw stones. But he has no problem tossing a
few boulders. "We definitely don't need 8,000 hedge funds,"
Balyasny said in his third-quarter investor call, adding that
50% to 75% of all hedge funds will disappear. "There is going
to be a giant washout of funds that don't bring anything to the
"When I started trading back in the early 1990s, we were taught
from day one that a trader's ability to make money in equities
- or whatever the instruments you focus on - was driven by
stock selection, timing and money management," said Balyasny,
managing partner and chief investment officer of $2.2 billion
Balyasny Asset Management. "Of these three, stock selection was
the least important element. If your timing was wrong, what
difference would it make what stocks you bought?"