Dispersion of returns in the hedge fund industry, which I follow closely, is very high.

Dispersion emerges even more in periods of stress. We saw it in GFC with JPM vs Citi or a Barclays that was selling BGI.

Private credit is a bubble. Ai is a bubble but maybe the dispersion will show in a bear market. The fact that many bank asset managers took losses on First Brands and Apollo shorted it was interesting. Not saying Apollo is JPM and not Citi.

I was a TMT sell side research analyst during dot com era and remember stocks in sector rallying on flaky stories but when the dust settled years later the dispersion was great.

I bet when private credit blows up there will be as many “credit tourists” blowing up as private credit specialist funds like Apollo.