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By Kirsten Bischoff, Opalesque New York: The newly released Credit Agricole Structured Asset Management 2008 Industry Report on hedge funds and CTAs (see below) does little to lift the spirits, estimating that hedge fund industry assets declined 34% in a year as almost 1,000 funds disappeared. As managers prepare for a secondary investor exodus at the end of the first quarter of 2009, the regulatory changes for hedge funds which are being considered by many governments may prove to be one of the ways to lure investors into maintaining their allocations.
The recent Preqin Hedge Fund Survey indicated a subtle shift of power between hedge fund managers and investors. 35% of Preqin’s surveyed investors felt more confident negotiating on fees and other demands. These assertions have not been lost on hedge fund managers and many have acknowledged that change within the industry is inevitable, and will likely strengthen it.
As Senators Levin and Grassley press for more hedge fund industry regulation in the US, and French and German officials press for tighter hedge fund restrictions throughout the G7, managers wait to see what demands will be made, and what regulatory bodies they will be required to answer to. However, as the industry is overhauled in the shadow of a larger regulatory backlash, hedge fund managers remain wary that the o...................... To view our full article Click here
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