Hedge fund success is relative in 2008

It's true that the hedge fund industry is healthy, but of course that's a relative concept. Compared to top Wall Street banks, hedge funds are thriving, but big gains have been hard to come by. We're definitely seeing some pockets of bad news. For example, Business Week Online reports that in the first quarter, 170 funds closed, an increase of roughly 30 percent over the comparable period a year ago. Investors have been choosier; inflows dropped 80 percent year-over-year. Most of the inflows are going to the really big brands. All in all, the game has changed. Investors now call the shots, and they are hardly shy about pulling their funds in the face of middling performance. More funds are bound to close, even those that have fared okay. But the shifting culture spells opportunity for some. Hedge funds, after all, are supposed to thrive in times like these.

For more:
- read this Business Week Online article

Related Articles:
Hedge fund launches getting harder even for big names?
Hedge funds struggle to post two stellar years in a row
Can hedge funds save the economy?