The deflating effects of underperformance and overregulation
Warren Buffet’s wager with Protégé Partners epitomizes the gloom hovering over the hedge fund industry. In 2008, the Oracle of Omaha bet the New York-based fund-of-funds $1 million that index funds would outperform hedge funds over the next 10 years.
Hordes of managers who emigrated from London now face a tough choice
European hedge funds just lost another friend, and this one was a big surprise to the industry.
In the past few years, Switzerland became the go-to place for London-based operators fleeing unfavorable tax treatment in the UK and the EU’s burdensome new Alternative Investment Fund Managers Directive (AIFMD; and see A Score to Settle with the EU).