Why Hedge Fund Returns Shrink Over Time

Some nifty data in a new report on shrinking hedge fund returns over time. The following figure shows how alpha has leaked out of U.S. hedge fund over the last 15 years. It compares how hedge funds have done over three periods since 1993, versus how they would have done if the world hadn’t changed so damn much since 1993.


Source: Why Does Hedge Fund Alpha Decrease Over Time?