Effectively, SEC regulations like Dodd-Frank impact large funds worldwide, because you're subject to them if you have more than a small number of US investors. (I think it's 15.)
That survey isn't particularly good data. For one thing, it conflates Fund of Funds with other hedge funds, which is pretty questionable given that they're really a separate class with different fee and performance expectations.
> That survey isn't particularly good data. For one thing, it conflates Fund of Funds with other hedge funds, which is pretty questionable given that they're really a separate class with different fee and performance expectations.
DeutscheBank is a bunch of kids and that particular report is questionable??? I hope you don't work in funds management.
> Effectively, SEC regulations like Dodd-Frank impact large funds worldwide, because you're subject to them if you have more than a small number of US investors. (I think it's 15.)
See http://www.google.com/?q=master+feeder. Hedge funds that want to accept money from US and EU investors are structured to avoid the US regulations for the EU investors (for many more reasons than lock-up periods - e.g. look at the graphs of lockup periods broken down by investor country???!).
It is almost the defining feature of hedge funds that every fund is different. A hedge fund is defined by the class of investor it aims at (institutional and/or qualified investors) - everything else is variable - hedge funds are diverse in almost all other dimensions (although some things are common e.g. 2 and 20).
Returning back to the original point:
"You could swap out VC funds with hedge funds and the article would pretty much be the same."
Very true. The variation within the hedge fund industry is more than the variation between a VC fund and any average hedge fund. IMHO 90% of the article applies to hedge fund investors. The issues of the 2% management fee, the human factors of the fund managers, and the issues to do with transparency (black box) are all relevant to many hedge funds.
The only reason I am answering you is because I hate seeing the standard misconceptions about hedge funds being promulgated.
That survey isn't particularly good data. For one thing, it conflates Fund of Funds with other hedge funds, which is pretty questionable given that they're really a separate class with different fee and performance expectations.