What critical shift occurred in the hedge fund industry following the collapse of Long-Term Capital Management (LTCM) in 1998 and the dot-com bubble burst in 2001?
A. There was a significant drop in assets under management in the hedge fund industry.
B. There was a large influx of institutional investors investing in hedge funds.
C. Reporting within the hedge fund industry became more regulated than mutual funds.
D. There was a significant increase in hedge fund failures.
Answer: B
During the time period following the dot-com collapse, hedge funds outperformed the S&P 500 with a lower standard deviation, which atlracted institutional investment.