Hedge Fund Predictions Not Optimistic

Hedge Fund Predictions

Hedge Fund Predictions Not Optimistic


Here is yet another article predicting a gloomy couple of upcoming years for hedge funds. Already, hedge funds have lost up to 15% of their total assets but until we see where investors place their cash after the crash we don't really know how much has actually been lost from the industry. Here is the article excerpt:

The hedge fund industry, a once-unstoppable profit machine that has already lost more than $200 billion in value this year, could shrink by a quarter or more as the global financial crisis deepens, according to industry analysts and fund managers.

Meanwhile, investors, typically giant institutions and wealthy individuals, are pulling money out of many money-losing hedge funds. That, in turn, appears to be contributing to the wild swings in markets, analysts say, as these redemptions force the funds to sell stocks and other assets, and unwind other complex investments in ways that can effectively drive up prices.

Officials speaking at Hedge 2008, an industry gathering in London, said this week that a quarter to a third of hedge funds could go out of business in coming months as markets sink, credit dries up and investors withdraw their money. Read more...

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Tags: Hedge Fund Predictions Not Optimistic, hedge funds losing market share, how much has the hedge fund industry lost, hedge fund industry shrinking, hedge fund investors and investments

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