Hedge Funds not so lucrative anymore

Money, Investing, Hedge Funds

Ouch! Looks like Hedge Funds are not so lucrative anymore! Look at all that lost money!

So what’s killing the golden goose? In a word: investors. It’s likely not a coincidence that as the number and size of hedge funds have swelled, hedge fund performance has sunk. Hedge funds’ success ultimately hinges on two scarce resources — skilled managers and exploitable market inefficiencies — and there simply isn’t enough of either one to support a $2.9 trillion industry. via Bloomberg Gadfly

The first mover advantage is long gone in this market. It appears to be moving toward the Startup world.

Update: I share more of my thoughts on passive investing and how it saved my life here