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From Kirsten Bischoff, Opalesque New York: Hedge funds are bracing for the effects the current financial crisis will have on investor demands for further transparency. The brutal “one-two punch” in 4Q-08 of nearly 100 hedge fund managers activating redemption gates and then the unraveling of the Madoff fraud, have unleashed a torrent of investor anger and will likely result in increased industry regulation in the future. Already, hedge fund managers are reaching out to investors in various ways to mitigate the damage that a few have inflicted on the industry as a whole.

Investors wary of positive returns As the Madoff fraud unfolds, it has become apparent that even funds that have achieved consistent, positive returns (perhaps especially funds with such returns), need to go above and beyond to assure investors in this environment.

New York based volatility firm Titan Capital Group this week notified prospective investors in its absolute return strategy that the fund would close to new investments at the end of the first quarter of 2009. The Fund has returned +20.35% YTD (as of 12/12) as well as 13% annualized return over the last 60 months and the firm has continued to raise steady assets even through the credit crisis. And yet, amidst this good news, the fund managers still saw the importance in adding the following statement to their announcement: “all of our products hold liquid instruments that are......................

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