Running a successful hedge fund takes a lot more than having a trading 'edge', as illustrated by the average number of closures every year
Not so long ago, the hedge fund business in Europe was a marginal 'cottage industry' - seen by some as one of the last bastions of gentlemanly capitalism. Launching a hedge fund was not really seen as an obvious way forward for someone who already had a successful career as a fund manager, investment banker or proprietary trader.
These days, however, the industry has truly arrived, with its annual growth of assets coming to challenge the much more mainstream and established mutual fund business. The scale of the money pouring into the industry, and the attractive economics - with relatively large annual management fees, and potentially unlimited performance fees - have made running a hedge fund a very real option for a potential manager with genuine talent.