Hedge funds create conflict

The booming hedge fund market is creating a crisis in the investment management industry by destabilising the long-only market, believes Stephen Lowe, investment consultant for Railpen Investments, writes John Butcher. Investors looking to invest with top long-only managers feel less confident in the commitment of managers, who could be lured away by the promise of high fees in the hedge fund industry, he said. In addition, there are long-only managers who are also running hedge funds, which, he believes, represents a dangerous conflict of interests. 'I am going to suggest that, in t...