Has a tipping point been reached? The stupendous growth in hedge funds in recent years has come from institutional investors, and whether the growth continues at the same pace depends more on their continued fascination with alternative asset allocation than almost anything else.
However, the disasters at Amaranth Advisors and Ritchie Capital Management serve as poignant reminders to many investors just how little clout they often have when dealing with hedge funds. As investors look back at the documents they signed years ago, they are finding, as one put it, "You can drive a truck through them." One investor