Go Read

Go read "Why ETFs Spell the End of Hedge Funds".  It is an interesting article although I find the premise that all hedge funds are going to go away, drowned as it were in the ETF tide a bit too simplistic.  First some hedge funds are quite good at what they do and have the long-term records to prove it.  Unfortunately for most qualified investors these funds are usually closed to new money.  2nd there will always be hedge funds that utilize strategies that the ETF market cannot or won't replicate.  Finally slick talkers with snappy slides and pretty presentation books will always be able to raise money even if their results don't ultimately match what they've promised.  It's been that way since mankind invented currencies and assets.

Better I think to say that the ETF industry's continued growth and branching out into newer and more exotic strategies likely means the hedge fund industry is going to be much smaller in the next ten years than it is today.

I'm traveling the rest of this week and will post again sometime early next week.