Why Hedge Funds Are Shutting Their Doors

The video discusses the current state of hedge funds, highlighting the high rate of closures, particularly among smaller funds, due to poor returns and capital allocation trends favoring larger funds. It examines the challenges of maintaining traditional fee structures like '2 and 20' and the impact of short-term liquidity demands on investment strategies. The discussion also touches on the influence of market dynamics and trust issues in investment decisions, comparing hedge funds to mutual funds and private equity.

What factors contribute to the decision-making process of hedge fund investors?

How do market conditions affect the performance of hedge funds?

What challenges do new hedge funds face in attracting investment?