There are extra hedge funds than Burger Kings

There was quite a lot of rending of clothes and gnashing of enamel lately over the dying of energetic administration. In the meantime, evil passive investing retains rising.

That is wrecking worth indicators, killing the dynamism of markets, fuelling bubbles/bear markets (delete in line with no matter markets are doing that yr) and imperilling capitalism itself. Yada yada.

The truth is after all that there’s extra buying and selling than ever earlier than, extra mutual funds than ever earlier than, and extra hedge funds than ever earlier than. The latter specifically has demonstrated a powerful potential to outlive and develop regardless of returns in mixture being mediocre (not less than there are only a few actually mega-wealthy mutual fund managers).

Considered one of our previous favorite “makes you assume” information is that there are more hedge fund managers than there are Taco Bell managers. It seems that it is a gross understatement. By way of SigTech. we study that information supplier Preqin has for the primary time ever counted over 30,000 hedge funds globally, distributed thusly:

There are greater than 4 instances as many hedge funds as there are Taco Bells (ca 7,200 it seems). Even final yr, when the typical hedge fund misplaced 5.3 per cent in line with eVestment, Preqin tallied 938 new ones being launched.

In actual fact, there are extra hedge funds than there are Burger King retailers (over 18,700), staff on the Pentagon (24,000) and phrases in Animal Farm (assuming no prologue); and practically as many as there McDonald’s franchises (ca 35,000) and listed shares globally (about 43,000).

Anyway, if you wish to learn extra, here is the full report.