Hedge Fund Managers Get Out Of Goddamned Miserable Hedge Fund Business

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Last week, word came down that Echo Street Capital Management was getting out of the hedge fund game. In and of itself, this is, of course, not unusual: 304 hedge funds closed their doors in the first quarter of 2020 alone. But Echo Street wasn’t having trouble raising money—it reportedly had a “waiting list of interested investors”—and its performance, while not particularly impressive this year with a 10% drop, has generally been “excellent.” Its founders aren’t retiring to play with his money in a family office; far from it: The firm will continue to run its long-only strategy and will launch a new long-focused vehicle that, frankly, sounds suspiciously like a hedge fund. There’s just one key difference: Running it won’t turn Echo Street’s managers into hollowed-out shells pining for death with each minute of the trading day.

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