Hedge fund launches getting harder even for big names?

We've noted that while the hedge fund industry is thriving, the barriers to entry seem to be rising. Launches are down, and the myth that just anyone can start one has evaporated. We're now seeing some big names--names that can command assets--struggle to launch. Dow Kim certainly qualifies as a big fish. But the former co-head of trading and investment banking at Merrill Lynch has nixed plans for Diamond Lake Investment Group after investors pulled about $1 billion in commitments. Kim may have been tainted a bit, fairly or not, by his role in powering Merrill Lynch to the top of the CDO tables, notes Breakingviews. This is yet another sign that despite the hedge fund industry's strength, the market has changed a bit, with investors gaining the upper hand. They wanted various assurance on risk and other issues.  

For more:
- here's the Breakingviews article