Originally published in American Lawyer, December 2005
The hedge fund industry has been enjoying exponential growth over recent years, despite a largely hostile mainstream press reporting environment, and more recently, a chorus of nay-sayers in the background predicting the levelling off and contraction of the hedge fund universe. With assets under management well in excess of $1 trillion and the onset of registration of managers with the Securities and Exchange Commission, the hedge fund industry has matured and, in many commentators’ eyes, has become (or is well on the way to becoming) institutionalised. During 2005 there have been many stories focusing on poor hedge fund performance, an overcrowded marketplace with too many managers playing in the same arena and not enough star players to maintain the run of success that the hedge fund sector has hitherto enjoyed. It might appear that hedge funds have become a little boring and consequently capital flows are slowing as investors
