Hedge Fund Fee Attack: Paying Money to Lose Money?

The video discusses the challenges faced by hedge funds, particularly the underperformance of well-known managers like David Einhorn, Bill Ackman, and John Paulson. It highlights how market conditions make it difficult to achieve an edge, leading to crowded trades and liquidity issues. Emerging managers with smaller portfolios may avoid these pitfalls. The video also covers significant redemptions from hedge funds, with $16.6 billion withdrawn in recent quarters, and the potential impact on the industry.

Why might hedge fund managers avoid certain stocks according to the conversation?

What impact have recent redemptions had on the hedge fund industry as discussed in the text?