Is now the best time to start a hedge fund?

We've noted the barriers to entry in the hedge fund industry seem to be growing, especially for those who do not carry a lot of capital with them. It seems you either need to be aligned with a seeder, or be a whale. Melissa Ko apparently is a whale. The former Bear Stearns trader reportedly has formed a new hedge fund, Covepoint Capital, with nearly $1 billion in assets. That will boost the average. Ko ran Bear's Emerging Markets Macro Fund, and apparently had enough followers willing to pony up. Lots of other former Wall Street execs are using the credit crunch to set up funds. At the same time, hedge funds and private equity funds are taking the opportunity to snap up some talent, despite the fact that the opportunities are severely outnumbered by the layoffs. Only the lucky ones will find a home in the alternatives investment world.  

For more:
- here's an article from TheDeal.com

Related Articles:
What it takes to set up a hedge fund these days
Hedge fund launches slow down