Why Hedge Funds FAILED in the Last Decade: Billions EXPOSES the Truth! 📉💼
In this segment, Chris Haroun explains why many hedge funds underperformed over the past decade. He argues that the rise of ETFs drove up stock correlations, making it difficult for hedge funds to generate alpha. To chase returns, hedge funds increasingly allocated capital to private companies and venture capital, a shift fueled by private tech firms staying private longer and entering public markets at vastly higher valuations (often $10‑$100 billion). This inflated valuation environment reduced the typical post‑IPO price pop that hedge funds had previously relied on. Haroun also references a “side‑pocket” called the Admiral’s Fund, used by fund managers to capture the spoils of their best ideas, illustrating how some funds insulated themselves from broader underperformance.
