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Even before Burton Malkiel popularised the term in 1973, investors had begun taking random walks and applying other theories supporting diversification of their portfolios. Yet today, the investment community, in particular the decision-making community, might be observed to be concentrating.

The traditional hedge fund model is no longer working. Performance is poor. Costs are high. Alignment is low. It needs to change. The three forces driving this need for change are:Increasing costs as regulators and investors demand higher operational standardsPressure on fees as investors are become more sophisticated and expect more for lessGreater competition making the markets more efficient and fragmenting available alph.