Hedge Funds in 2009
Hedge Funds in 2009 | Performance Notes
Here is a short article discussing the potential turn towards positive hedge fund performance for 2009. While this may not happen until 2010 or later I believe the article does bring up a few valid points:
Hedge funds are under fire these days but they are likely to provide good investment opportunities next year, according to a senior figure in the industry.
Mr Christophe Grunig, chief investment officer of Swiss fund Harcourt, told a gathering at Singapore Management University: 'Until the end of the year, it will be difficult. A strong deleveraging process has taken place, and there are redemptions. 'But in the medium term, 2009 could be an excellent year. There are huge trading and investment opportunities.'
Mr Grunig said the industry shakeout that is going on will mean less competition so hedge funds would soon no longer have to compete against powerful investment banks. That will lead to more funds being open for investors.
The industry consolidation is reducing the number of hedge funds, making life difficult for smaller operations. 'There's a natural selection, survival of the fittest, and there's a healthy consolidation going on,' he said. Read more...