Hedge funds have a big problem: They can’t beat the market anymore.
So it’s kind of strange that hedge funds are managing more money than ever. The industry was managing $1 trillion in the mid-2000s, a milestone at the time. But now hedge funds are managing more than $4 trillion globally. And they’re still growing.
Hedge funds, it seems, are victims of their own success. Many of the people I’ve spoken to in the industry have said the same: Beating the market is harder because they’re managing too much money, which means smaller opportunities get ignored.
Fortunately, there’s another, lesser-known group of funds that doesn’t have this problem…
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