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Yaser Anwar

So Jason let me ask you, what's the solution to alpha returns then? We certainly cannot stop funds coming in and most use the same HF strategies- what needs to be done/what's your view as an industry veteran?

Jason Wood

Thanks Yaser,

All strategies have some measure of convergence as the industry continues to grow. That's one of the reasons I laugh when skeptics point toward the lower aggregate returns for hedge funds over the last few years. The reason isn't because great managers aren't delivering any more, it's because the industry has gotten large enough that now a lot of not-so-great managers are also in the game, muddying up the returns.

Yaser Anwar

Jason-

Awesome post. I think quant strategies will keep becoming more negatively skewed as more and more tools such as Reuters are launched.

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