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Article: Born to be trimmed? Hedge funds; Well-trimmed hedge funds.(Finance and Economics)(Hedge funds are wooing institutional investors. But such ambitions might be too big for them)
- Article from:
- The Economist (US)
- Article date:
- December 2, 2000
CopyrightCOPYRIGHT 2000 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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THIS has been a year for high-profile departures by hedge-fund managers, the Jay Gatsbys of the 21st century (see chart). Jeffrey Vinik's announcement at the end of October that he would be shutting down his $4.2 billion fund by the end of the year followed similar retreats by George Soros, Stanley Druckenmiller and Julian Robertson, all of them stars in the industry. But hedge funds are not on the defensive. The retreats only confirm their peculiar nature: that they are, possibly, most effective when they are small, exclusive and even transient. It is the days of the big players managing gargantuan pools of money that may be numbered.
The old-style exclusive ...