'Hot' hedge funds come up short for investors, researchers find

In at least one way, asset classes in capital markets are not unlike consumer products. As they compete for investor cash, trend cycles often come into play. The movement of demand toward the "hot" investment vehicle of the moment also affects supply, according to the inexorable logic of markets. Similar to fashion brands fast-tracking production of sought-after items, the cyclic proliferation of certain asset classes raises quality concerns.