State of the industry. Update from 2007?

math_trading_coding · Post by **math_trading_coding** » Fri Aug 03, 2012 7:55 pm

I just read that Louis Bacon returned 25% of AOM.

I have not posted here in 4-5 years, and do not work in the field anymore.

1) Has the hedge fund industry shrunk in the last few years?

2) Has DoddFrank had any actual effect on anything in the real world?

3) Is the "How do I become a Quant" still the most popular topic here?

math_trading_coding · Post by **math_trading_coding** » Mon Aug 13, 2012 7:37 pm

anyone ?

purbani · Post by **purbani** » Tue Aug 14, 2012 12:37 am

1) The hedge fund industry contracted in 2008 - 2009 and then rebounded sharply in 2010. AUM is currently at just over $2tn up from previous 2008 peak of $1.7tn. About 40 - 50% of funds still below HWM. Fund of Funds industry has contracted sharply by about 30% and lots of consolidation currently underway. Critical mass in FoF AUM now > $5-10bn unless very niche.

2) Not to my knowledge

3) Can't say

math_trading_coding · Tue Aug 14, 2012 12:39 am

Ok, so the HF industry is larger than ever, but the performance fees have been null for a few years b/c of the HWM issues.

Also, FOF segment has taken a huge hit and is going to get worse. Only a fool would invest in a FOF.

purbani · Post by **purbani** » Tue Aug 14, 2012 12:51 am

Correct - I suppose you could argue that the fear of DoddFrank to come and the closure of many bank prop desks ( those that didn't suddenly find themselves part of the CIO office Wink ) has driven new HF issuance. Haven't seen them all so can't speak to overall quality.

Reactor Core · Post by **Reactor Core** » Tue Aug 14, 2012 10:42 am

This thread was moved from [url=/Show%20Forum.aspx?ForumIDKey=1]General[/url] to [url=/Show%20Forum.aspx?ForumIDKey=12]Trashcan[/url].

Reason: Thread elicited too many negative ratings.