Big drop in money flowing into new hedge funds

I was wondering when you'd post this ... it's been up on their site since this morning.

I'm glad you like the source I introduced you to...

Stop the presses! We were all assuming that 2009 was a banner year for hedge fund inflows.

I assume you are being facetious, but I think you are confusing 2008 and 2009.

We had a 60% runup in the S&P beginning in early 2009.

that's something that Equatorial Guinea can help with given the right inputs

http://www.nytimes.com/2010/02/04/business/04bribe.html

Large hedge funds run by super-stars with track records will attract. Bernie Madoff and the public's new respect for asterity will reduce demand. We're not back to go-go 2005..yet

I'm well aware of what happened in 2009. But I wouldn't have assumed there was a strong correlation between a runup in the S&P and new money pouring into hedge funds, post-Madoff and after so many other investors were trapped in illiquid funds in 2008. I would have been shocked if people were running back into hedge funds at this point. Particularly because you don't need a lot of active management to make money when the market is trending up.

That said, there are a lot of hedge fund guys who are quietly making a lot of money again.

"But I wouldn't have assumed there was a strong correlation between a runup in the S&P and new money pouring into hedge funds"

Then you were smarter than many.

I agree with your points... but, also, active management doesn't mean you'll make money when the market is going down, either. Statistically, it means you'll lose more.

"That said, there are a lot of hedge fund guys who are quietly making a lot of money again."

Only because there are a lot of hedge guys. There are a lot more not doing so.

Oh, so you were the one who introduced me to Crain's when I lived in Chicago over 15 years ago! I didn't recognize you. Thanks again! :-)

Money going into NEW hedge funds is not at all the same as money flowing into ALL hedge funds. The latter is the only measure that matters for your argument.

> Oh, so you were the one who introduced me to Crain's when I lived in Chicago over 15 years ago!

Crain's Chicago is a different paper. Maybe you didn't notice your subscription ran out 15 years ago.

You only seemed to be reminded that they had an e-mail update after I had been posting the pieces for a good 6 months...

Money going into NEW hedge funds is not at all the same as money flowing into ALL hedge funds.

But its a huuuuuuuuuuuuge segment of it. Pretending the stat isn't meaningful is a little wacky.