Straight from Business Insider which I don't even like as a source for being too much reliant on click baits.
Managers "don't get paid anymore," he said. "They work really hard hours, the stress is ludicrous, the amount of assets you are able to raise is not easy any more."
Many of these issues are tied to a feeling that the industry has passed its golden years. Hedge funds generally are not posting the out-of-the-park returns they used to, and many worry that the investors are moving their money elsewhere.
"The lower returns are by design," he said. "When I left [the industry] it was at that moment that the hedge fund industry started switching to taking pension-fund money, and the pensions wanted it to look like a bond. They want low volatility, 8% returns. So that makes the big mangers get really rich, like Bridgewater, Brevan Howard and all these guys that have billions and tens of billions of assets. But nobody else can make money."
"People aren't taking risks any more," Pal, the founder of Real Vision TV and Global Macro Investor, added. "The old days of Julian Robertson or George Soros making 100% returns have gone."
Can any insider here confirm any of this?
It's not the first time I read something like this, at least this year, so I simply assumed it was a tough year; if we stick to what Pal says however, it's a dying industry. What went wrong?
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