The NY Times writes about the rise of hedge fund billionaires and whether such billionaires day in the sun is nearing an end. Their article begins as follows:
In the annals of the immensely wealthy, the hedge fund manager is a relatively new entry. It has been only about a decade since significant numbers of hedge fund managers, including Kenneth C. Griffin of Citadel, Paul Tudor Jones of Tudor Investment Corporation and Steven A. Cohen of Point72 Asset Management, began appearing on billionaire rankings.
Hedge fund managers quickly expanded their numbers on these lists. By 2015, they accounted for roughly 8 percent of the nation’s 400 wealthiest people, according to Forbes, which compiles that definitive list each year.
But the bloom may be coming off the hedge fund rose. In the past couple of years, as overall returns have lagged broad indexes, investors have grown increasingly concerned about exorbitant management fees, excessive secrecy and illiquidity in the arrangements. The result: The number of hedge funds is declining, and so are the fees managers charge.
Given this landscape, some wealth watchers are wondering: Has the hedge fund billionaires’ moment passed?
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.