10 years ago, everyone wanted to be in the hedge fund industry. Today, it's tech startups. Having worked in both fields, you encounter the same folks running from funds to startups.
Hedge fund fees probably move to 1 and 10 over the coming decade, but active investing and price discovery are very valuable. For those willing to do the work, small and midcaps still can generate alpha. However, it will require spending many hours traveling and meeting with management and being engaged in the sector virtually nonstop (trade shows, conferences, reading articles/news).
I think generalist active investing will go away, but sector focused active investing will remain.
10 years ago, everyone wanted to be in the hedge fund industry. Today, it's tech startups. Having worked in both fields, you encounter the same folks running from funds to startups.
Hedge fund fees probably move to 1 and 10 over the coming decade, but active investing and price discovery are very valuable. For those willing to do the work, small and midcaps still can generate alpha. However, it will require spending many hours traveling and meeting with management and being engaged in the sector virtually nonstop (trade shows, conferences, reading articles/news).
I think generalist active investing will go away, but sector focused active investing will remain.