It has been happening over the last 5 years. The best and the brightest traders have been moving out of the Mutual Fund arena and going to work for or starting a Hedge Fund. Why wouldn’t they? Have you seen how much money you can make running a successful hedge fund. There is no better paying job in the world. You can make more than Brad Pitt and be the ugliest guy on Wallstreet. It’s also much more exciting because they aren’t as heavily regulated and you’ll get to trade distressed credit, options, commodities, futures, energy, metals and Star Wars figures if they thought there was big money in it. Hedge funds are also able to attract the top talent right out of school for the same reasons. For the investors, hedge funds are much more risky but most don’t have the opportunity to invest in them. If they do open to the common investor they will most likely have to add more regulations so it is a catch 22. My advice, do your own due dillegence and trade on your own. That way, you can keep it all.