NO LOVE IN THE AGE OF OLOV
The problem for active fund managers is that all their assets are over leveraged and over valued (OLOV).
For the 2/20 model this means they now make make all their money from the 2 and not the 20.
This means they still have nice income but also have lots of disgruntled investors.
This then means the income form the 2 starts to shrink as well as funds are pulled out by investors.
So then the hedge funds come back with 1 and 10 to try and keep the funds in the fund.
Their entire strategies become focused on retaining funds, and if they fail they close down
Because 1 is better than 0 even if its not 2.