Big fund groups have seen similar patterns.
So many fund groups offer state-specific funds.
At other fund groups, mutual funds are typically run by a for-profit management company.
The game has become much more difficult for big fund groups.
The survey included 3,015 brokerage firms and 310 mutual fund groups.
That strategy worked well for the fund groups that employed the young managers.
Nevertheless, they found that stock market correlations grew significantly for almost all hedge fund groups after correcting stale prices.
But more often, big fund groups find their top deputies simply want to strike out on their own.
A new collection of fund groups, meanwhile, has replaced Janus at the top, and their success suggests two strategies.
It also began treating each of its fund groups as a discrete business entity with separate profit and loss statements.
Fidelity Investments (www.fidelity.com) and Vanguard Group (www.vanguard.com), the two biggest fund groups, also plan to let investors open accounts online.
