Hatching_a_New_Plan_of_Attack - HatchingaNewPlanofAttack

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Hatching a New Plan of Attack  By ARINDAM NAG  |  MORE ARTICLES BY AUTHOR The pressure is on hedge funds to beat benchmarks while limiting risk. LONDON'S MAYFAIR DISTRICT IS KNOWN  for flamboyance and high living. But neither was in evidence at a two-day hedge-fund  conference held near there recently. Day One's postsession cocktail gathering lasted hardly an hour. Backslapping was out; worried looks at mobile devices were in. The  Dow was down again -- 500 points in one day. And the spirits of many of the 175 people in attendance were similarly deflated. "At least 25% to 30% of the industry will be shut down" predicted Emmanuel Roman, co-CEO of U.K. hedge-fund group GLG Partners. If he's right, as many as  2,100 of the 7,000 hedge funds around the world will become history. Amidst the gloom, the attendees -- from banks, pension funds and endowments, as well as hedge funds -- tried to envision the future.  The consensus: Hedge funds are here to stay, but they're entering a new world, a world without excess risk-taking and one that will  favor smart managers strong on fundamental analysis. Change, obviously, is needed. Hedge funds, despite their alleged ability to counter market downturns, have suffered in the global  financial chaos. The Eurekahedge Hedge Fund Index lost  4.98% in September and 8.10% in 2008's first nine months. Another widely  followed measure, the HFRI Fund Weighted Composite Index, was off  5.42% in September and 10.11% this year, through Oct. 15.
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This note was uploaded on 04/09/2010 for the course NBA 5450 taught by Professor Richardmarin during the Fall '09 term at Cornell University (Engineering School).

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Hatching_a_New_Plan_of_Attack - HatchingaNewPlanofAttack

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