"There's going to be a lot less hedge funds in the industry--anywhere from 30% to 50%--and I tend to err on the 50% side." So said Peter Carey, senior investment officer for alternatives at the $153 billion New York State Common Retirement Fund at the Asset Allocation Forum. As if on cue, CNBC reported that hedge fund family Tontine Partners will shutter two of its funds. Tontine Capital and Tontine Partners are both suffering through rotten years; it will still operate Tontine 25 and Tontine Financial, however. Which brings us to the flip side of Carey's comments, "That's a healthy development, because there's a lot of folks out there that shouldn't be in this business, or at least be shouldn't be charging the fees that they're charging." He's not referencing any specific fund families. His general point is that he senses lower fees, better treatment, better access to top funds and "unique" partnering opportunities--"deals I don't think we've ever seen."  

For more:
- here's more on Carey from FINalternatives
- here's more on Tontine from CNBC

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Navigating the Hedge Fund Maze - October 2008