Money managers under the microscope
News and views on the hedge fund sector from Reuters and elsewhere:
Funds of hedge funds trailed recovery - Bloomberg
Jacob Rothschild moves back into hedge funds - Citywire
Hedge fund stories from the past 24 hours from Reuters and elsewhere:
Spain favours strict hedge fund rules – Guardian
What’s powering the Asian hedge fund rollercoaster – Seeking Alpha
Canadians move back into hedge funds – Reuters
There seems to be an endless wave of bad news hitting the hedge fund industry at the moment — gates and suspensions, record poor performance, the Bernard Madoff scandal and so forth – but there are still one or two reasons to be positive.
According to a survey of institutional investors by alternative assets data group Preqin, conducted in January (and therefore after the alleged Madoff fraud came to light), only 8 percent said they were no longer confident about hedge funds and would reduce investments.
We perhaps know already that 2008 was the worst year ever for FoHFs, and that cumulative losses reached an all-time high as the year ended with a Madoff-shaped bang. Fitch also raises a fear that managers have shared after imposing redemption restrictions on clients wanting to stash their cash under the proverbial mattress: