AQR's Asness: More 'Winnowing Out' of Hedge Funds Ahead

The video discusses the critique of hedge fund practices, focusing on their correlation to markets, fee structures, and the concept of alpha. It explores the challenges in pricing unique alpha and the impact of industry trends on hedge fund performance. The speaker emphasizes the need for more accurate fee structures and the role of investors in shaping the industry. The discussion also covers the potential for a reconstructed hedge fund industry with better pricing and more hedging.

What factors contribute to the current performance of hedge funds?

What does the future hold for the hedge fund industry according to the text?

In what ways do hedge fund investors have the power to change the hedge fund world?