1) 2016 saw the largest number of hedge fund closings since the credit crisis
2) Legal, regulatory and technology costs have increased substantially which makes launching new funds more challenging
3) Ten years ago $100M was a descent size to reach for a new fund today that number is $4-5B
4) Having risk committee too involved reduces alpha
5) Due to available resources it's easier to know the unintended consequences in a larger fund
6) If you are just a bottom up fundamental investor you will get left behind
7) Factor risk was not in hedge fund vocabulary ten years ago
8) Cleaning data making it monetizable for PMs requires resources which smaller funds don't usually have
9) Large/ experienced investors prefer paying 2/20 to having a no fees bare bones operation
10) It's easier to attract talent than any time before but guaranteed minimums have gone up
11) Unwinding of Fund of Funds model has made it more difficult to launch start up funds and finding money for smaller funds. Fund of Funds space has been partially taken up by family offices
12) Hedge Funds industry is in a consolidation phase where big funds will get bigger
13) Average hedge fund life span is 3 years, only one in one hundred make it to 25 years
14) You have to continually evolve and reinvent yourself to stay relevant
15) Today marketing, communication etc., just as important thus you need to be a good business manager where as ten years ago you could have gotten by just being a good investor
16) San Antonio Spur's head coach Greg Poppovich's #1 criteria in recruiting is character thus you do not read Spur's players involved in DUI or other extra curricular activities
