List of Five Reasons Why Hedge Funds Continue to Prosper

July 17, 2007 |

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Forget about all the doom and gloom many journalists like to carp about in regard to hedge funds.  There is plenty of evidence that hedge funds are not only here to stay, but the industry is poised to grow and expand like never before.  Here is a list of five reasons why, according to a recent study, and why you could become the next hedge fund superstar:

1. By 2010, the number of institutions investing in hedge funds is expected to increase to nearly 25% (of all institutions), up from 15% today.  This represents more than a 60% increase.
2. There are now about 9,000 hedge funds in the world according to best guestimates.  I remember when there were 6,000 and some people were asking if that was too many.
3. As of March of this year ‘07, it was an estimated $2 trillion invested in hedge funds worldwide which repesents almost a ten fold increase since 1999.
4. Of the estimated 9,000 hedge funds said to exist — 351 of them manage $1 billion or more.
5. Traditional investment houses continue to bleed talent to hedge funds (I don’t need a study to prove this to me — I just look at my voice mails and emails over the past six months to verify).

By the way, did you know that the average hedge fund was only 5.3 years old in 2006?? 
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