It’s fine if you want to stay in passive investing for the long term. But the point is that it would be difficult to move from Vanguard to, say, a hedge fund or any other fund that does more than passive investing. I’m also a bit skeptical that passive investing will “take over” any more than it already has, as it’s largely linked to central bank policies, which will not last forever.

You need much more capital and more of a track record.

Why is it more difficult to start your own fund now compared to the early 2000’s

It’s not “dead” but it is getting more difficult to start your own fund.

Do you think the hedge fund industry is dead? Is it impossible to start your own fund now a days?

When you first start, the firm’s money. But as you advance, you’ll have to contribute some of your personal net worth to the firm in most cases, which means you’re at risk losing it if things go poorly.

It’s impossible to answer your question without more background information. Feel free to reply to one of the newsletters here if you want brief advice (I’m not going to read a multi-page life story or respond with more than 1-2 sentences).