Hedge funds to decline in size, says veteran - Spear's Magazine

Hedge funds to decline in size, says veteran

The golden age for super-sized hedge funds may be coming to an end as investors think about putting more money with smaller players, said an industry veteran at the Reuters Private Equity and Hedge Funds Summit.

The golden age for super-sized hedge funds may be coming to an end as investors think about putting more money with smaller players, said an industry veteran at the Reuters Private Equity and Hedge Funds Summit.

“I think the established hedge funds will get smaller over time because of redemptions, losses, and loss of talent,” Thomas Grossman, principal at Union Avenue Advisors told the summit in New York.

Armed with $100 million in assets, Grossman plans to make bets in emerging markets and raise as much as $300 million for his new fund. Previously he ran Aeneas Capital Management.

In recent years successful hedge funds have tended to be much larger than the amount Grossman hopes to raise and industry experts say managers generally need to have between $500 million and $1 billion to make their businesses work.

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