The current credit crunch has seen several hedge funds forced into liquidation. With weak performances and financial losses threatening the industry, are hedge funds in danger of having fundamental weaknesses exposed? Cherry Reynard peers into the fissures to comment on the future
The recent credit crunch has forced the guarded world of hedge funds into the spotlight. Several have been forced to close, while others have been implicated in price manipulation of banking shares. Equally, performance has been weak in the first quarter, with many hedge funds losing money. So to what extent has the credit crunch exposed the weaknesses of the hedge fund industry? Hedge Fund Research showed the average fund tracked by its HFRX index was down 2.4% in March. This represents the worst month since the collapse of LTCM in 1998. January had also been weak, though February offere...
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