Blackstone President: Hedge Funds To Lose A Quarter Of Their Value

Hedge funds are going to lose a quarter of their total $2.9 trillion value over the next year, says Blackstone’s billionaire president.

“There will be a shrinkage in the industry and it will be painful,” says the firm’s president, Tony James. But don’t take it from him—the hedge fund industry is experiencing its worst year’s start since the upheaval following the financial crisis, Bloomberg reports.

Hedge funds are down 1.8% already this year and have had net outflows totaling $16.6B in the past two quarters—that’s the most since 2009. All while underperforming the market, prompting James to side with Warren Buffett and call out hedge fund managers for the huge fees they charge. [Bloomberg]

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