Hedge Funds v/s Private Equity: Which industry will survive and thrive in the next two decades?
Loaded Naive Questions Alert: Apologies for the verbosity.
I recently read a thread on the hedge fund bloodbath. Coincidentally, I recently saw a video where Balysany spoke at Milken Institute's panel discussion and gave some profound advise on 'How to run a hedge fund?'; and just now I read that his fund is letting go 125 people - randomness giving some entertainment. In the last two weeks, I have been reaching out to ER analysts and somehow, everyone seems to be unanimous on one fact - sell side stock picking is dying, if not dead already. The buy side stock picking, especially the HF bloodbath, shows maybe the entire public markets' discretionary investment space is dead?
Here are the questions:
1. In the coming two decades, will we be left with a handful of hedge funds running on quantitative strategies with an iota of human contribution? If there is any contribution at all, will it be in actual idea generation or just in fund raising/IR?
2. Will the PE guys simply take over the entire alternate asset class (or most of it)?
3. The people who are sticking to the good old fundamental investing professionally will be left with just the copies of Intelligent Investor and their termination letters in their hands?
In case you choose to answer this and have an angle on APAC, kindly include that as well.