The hedge fund industry wheels keep turning

The distillation of a number of conversations I have had with practitioners and observers in the hedge fund industry over the last month reveals how the industry is growing, a point not new to readers of these editorials over the last few months. But one conversation in particular, with Simon Ruddick of Albourne Partners, produced an interesting theory as to what is fuelling this growth. His view is that the hedge fund industry represents the new, and more efficient, market for risk capital.