The top hedge funds that can realistically promise [0] excellent returns are basically all capacity constrained AFAICT
Either that or they've switched business model to mostly making money on the management fee. It's easier to grow the assets than the returns.
[0] If you can get money into one of the top multi-managers, in peacetime you are basically looking at somewhere between a nice and very good return every year. Where peacetime could well include a big bear market in stocks e.g. Millennium made 35% in 2022 despite a big draw down in the SP500.
This of course isn't magic, illiquidity, big spikes in (say) funding costs, or just foolishness can still kill them.
Either that or they've switched business model to mostly making money on the management fee. It's easier to grow the assets than the returns.
[0] If you can get money into one of the top multi-managers, in peacetime you are basically looking at somewhere between a nice and very good return every year. Where peacetime could well include a big bear market in stocks e.g. Millennium made 35% in 2022 despite a big draw down in the SP500.
This of course isn't magic, illiquidity, big spikes in (say) funding costs, or just foolishness can still kill them.