Hedge Funds The bottom of the barrel

The capital employed in the hedge fund industry has increased fivefold over the last decade. All the low-hanging fruit, where hedge funds used to earn juicy returns, has long been consumed. This has forced them into new fields. Appaloosa Capital, for instance, a hedge fund which gained a reputation from trading distressed debt, has recently shifted into US equities. Its manager claims that he’s been crowded out by new entrants into his specialized area. Another hedge fund, SageCrest Capital, is ...