Reverse Apotheosis in Hedgistan

Jesse Eisinger has an important piece up at DealBook today.  Not sure how the cross-posting things works, maybe DealBook makes a donation to save pandas and they get a ProPublica contribution?  I don’t know.  Anyway, it’s about how hedge funds have gotten themselves back to the pre-crash asset levels they used to enjoy – but with strings attached.

The investors who are committing capital are now in the driver’s seat, signing a check over to a manager is no longer the equivalent of “signing their lives away”.

Hedge funds are now beginning to resemble, gasp, mere mortals!  They look more like us in the asset management business than the Gods of yore.  Call it a Reverse Apotheosis if you will (and I will because it makes me sound smart)…

Another sign of the new rationality is that hedge fund fees are finally creeping downward, a trend long predicted that had not ever managed to arrive.

In the past, hedge funds have been something of a “Giffen good” — that unusual market phenomena of demand rising as the price climbs. The more the hedge funds charged and the more exclusive they were, the more they were desired. Incentive fees, however, have finally begun to ebb, down to 19 percent from 19.3 percent three years ago, according to Hedge Fund Research.

And you should also know that, in the aggregate, hedge fund performance has been nothing special…also, all that money being raised is way more concentrated amongst the big funds, little funds can’t even get themselves arrested these days.  Most importantly, they’re paying these guys like regular asset managers because, in reality, that’s all most of them are.

Source:

Credibility Shaken, Hedge Funds Are Punished by Investors (DealBook)

What's been said:

Discussions found on the web
  1. movies123 commented on Sep 16

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  2. คอนโดเงินเหลือ commented on Sep 17

    … [Trackback]

    […] Here you will find 77770 more Information on that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  3. neon green wig commented on Sep 18

    … [Trackback]

    […] Here you will find 85509 more Information to that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  4. dumps + pin site commented on Nov 16

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  5. buy marijuana online commented on Dec 22

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  6. replica patek philippe commented on Jan 14

    … [Trackback]

    […] There you will find 1373 additional Info to that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  7. Digital transformation commented on Jan 16

    … [Trackback]

    […] Find More Info here on that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]

  8. DevSecOps definition commented on Jan 18

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2011/02/17/reverse-apotheosis-in-hedgistan/ […]