But performance of the alternative asset class still ahead of stocks.
Exec leaving for 'family reasons' but will continue to advise the money manager.
Activist hedge funds have pulled in at least $2 billion in new assets from institutional investors over the past two years, with a marked acceleration in pace in the second half of 2011 and so far in 2012.
Institutional investors will be sharpening their scalpels this year, cutting managers that failed to provide what they promised: absolute returns.
Alternative investment managers Bridgewater Associates and AQR Capital Management are turning their attention to the defined contribution plan market with tweaks to their strategies.
Emerging-hedge-fund managers are getting more attention from institutional investors because they tend to produce better returns than larger, more established funds, but industry insiders disagree about the extent of the outperformance.
The poor outlook for fixed-income returns is pushing some institutional investors to consider more-active approaches to managing their fixed-income portfolios
Despite assurances to the contrary, a segment of hedge funds still has up to $100 billion locked up and won't allow redemptions
Hedge fund managers are exploiting the post-crisis period to find buyers and sellers, as well as talented investment and client service teams
