(Opalesque) For years, investors have suspected they aren’t getting the alpha they are paying for from long/short hedge funds.
The underperformance might be even worse than they feared. Not only are they not capturing alpha, but investors aren’t even getting all the beta they should receive from long/short. For many years, hedge fund managers had been capturing most of the risk premia available from long/short equity. There were fewer hedge funds, lower industry AUM and arguably a higher concentration of quality talent.

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