Hedge Funds

Are the über start-ups a sign of collective insanity?


Record sums have been thrown at a handful of launches by new investors

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