Is the hedge fund bubble really about to burst?

The 'hedge fund bubble' is on everybody's lips. Conventional wisdom would have us believe that when an asset class becomes excessively popular we are in the presence of a bubble. And historically this has been true, and would theoretically be true for hedge funds if we were in the presence of an asset class in the traditional sense of the word ' i.e. of a group of securities whose value will fluctuate according to supply and demand.

The fact is, however, that the hedge fund 'market,' unlike the