Size matters

Hedge fund returns are supposed to be detached from traditional markets. But July and August proved yet again that all types of assets sometimes lose money at once. Hedge funds in aggregate lost 1,3% last month, according to Hedge Fund Research. A patch of rocky performance does not, however, really threaten the hedge fund industry. Instead, it could serve to accelerate the sorting of the men from the boys. Big funds with good track records, diverse investor bases and large-scale operational ca...