Thursday, June 6, 2013

The Richest Families In The World Are Staging A Quiet Rebellion Against Hedge Funds



From BI: It's no secret that since 2008, most hedge funds have lagged the S&P 500. Because of that, now the world's richest families are starting to wonder if hedge funds are really worth their incredibly expensive price tag. And they're starting to ask hedge fund managers some tough questions about it.

Yesterday, Bloomberg hosted a conference called "The Hedge Funds Summit" for (you guessed it) hedge funds and the people that invest in them. Many of the attendees were from Family Offices — investment houses where the fortunes of the world's wealthy are put to work.  As you can imagine, hedge funds want a piece of that action. That's why a solid portion of the afternoon was spent discussing Family Offices, though hedge funds probably didn't like what these juicy potential clients had to say.

"We're quite skeptical in general... of the hedge fund industry," said Andrew K. Tsai, Co-Founder and managing principal, Chalkstream Capital Group.  Sixty-one percent of all hedge fund money is concentrated in the hands of the top 100 hedge funds, and Tsai went on to say that that concentration makes for some wacky correlations his office would stay rather away from. However, Tsai did say that his office is willing to seed smart hedge fund managers that have solid strategies for specific sectors….



Read more: http://www.businessinsider.com/family-offices-question-hedge-funds-2013-6#ixzz2VRxLkO3W

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