In spite of their famed repute for rewarding investors with stellar gains, more and more hedge funds are tanking—and increasingly are closing shop, The Wall Street Journal reports. The burgeoning number of hedge funds has led to portfolio managers all chasing the same ideas, leading to slimmer profits and bigger market swings.

So far this year, hedge funds are up 6.9%, compared to returns of 31.2% in 1999, according to Hedge Fund Research.

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