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