Ray Dalio, famous for running Bridgewater, the world’s largest hedge fund, is famous for mocking the growth in the hedge fund industry:

There are about 8,000 planes in the air and 100 really good pilots.

Every time I hear that quote I think, “Wow, so many managers are out there trying to get paid big fees!”

Well, 8,000 is a LOW guesstimate of the planes in the air…

Turns out there are over 24,000 pilots going for the “2/20” payment scheme (~10,000 identify as hedge fund specific).

Here is a link to the recent compilation of the private fund statements from form PF and ADV data (h.t., Cipperman Compliance).

Here is the table on the # of funds in the private fund space–24,000+! Wow.

www.sec.gov_divisions_investment_private-funds-statistics_private-funds-statisti_2015-10-19_08-28-16

And who are the suckers buying all these things? Government and private pension plans.

www.sec.gov_divisions_investment_private-funds-statistics_private-funds-statisti_2015-10-19_08-30-51

 

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