Half of the world's hedge funds could be dead in the next 2 years

It's the end of the hedge fund world as we know it, or so it appears.

K.C. Nelson, the lead portfolio manager at Driehaus Capital Management, has lain out a grim assessment of the industry in a commentary to clients that perfectly sums up the many issues facing the industry.

From long-term structural trends to current market conditions, Nelson lays out an ugly picture for hedge funds that he thinks will end with a massive shrinking of the industry.

"So what’s the bottom line of these changing industry dynamics?" Nelson wrote.

"I believe there will be a culling of hedge funds like we've never seen before. I'd estimate the number of funds gets cut in half over the next couple of years."

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