I don't know why Matador only took in $500 million-- perhaps that was all he was comfortable with or needed at the time-- remember, VN is old school when $100 million was considered huge---- Obviously, low vol returns are obtain the most capital due to the institutional allocators such as pension funds etc demanding the low vol returns. Remember, I work with small niche capacity restrained funds, i don't know much about the goliaths of the business. surf
If that is true, why are you generalizing? Your niche market is obviously not representative of the industry as a whole.
Nice catch. Ltcm, quantum and several other funds were active at that time. Hedge funds were mainstream by 1998.
This post is diametrically-opposed to your previous that stated that WS rewards the reckless and concentrated while kicking the low-vol to the curb. So now the big money goes to firms with low variance... So which is it?
Wasn't merriweather funded with another billion plus after ltcm? I think its proven that the bigger you blow up the more money you get next time-- sure there's exceptions. Heck, VN is an example. Matador was his largest operation by far.
For non institutionalized type operations, sure-- it is still big for single manager outsourcing types.