Comeback kids

One strike and you’re out. That’s always been the rule with hedge fund managers. Lose your clients’ money and you’re out of business. But now a London-based firm is asking for a second strike. Just months after liquidating its last fund, Bailey Coates is trying to raise a new one. It won’t find it easy. Hedge funds sell absolute returns at a high price. If you don’t deliver those returns, why would people entrust you with their money? True, you could always cut your fees. But most investors ar...