AllAboutAlpha.com notes that there are two fairly common criticisms of the recent boom in the industry: The rampant growth allowed inferior managers into the mix, and alpha opportunities were simply overwhelmed by inflows. So perhaps the on-going shakeout will pave the way for a quick recovery.

A commentary on the site notes that the industry tends to do well after major dislocations. The key to getting back above the high-water mark of course will be to find the right opportunities, and an obvious one is distressed securities. Fittingly, no less than John Paulson, the $3 billion man, is interested in investing in debt restructurings, bankruptcies, strategic mergers and financial recoveries. 

For more:
- here's the AllAboutAlpha.com piece
- here's a Reuters piece on Paulson

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