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From Kirsten Bischoff, Opalesque New York: Over the course of 2008 the hedge fund industry has decreased by approximately 1,000 funds. However, the year did offer opportunity and as Opalesque has reported, many managers were able to convert this into positive performance. As those funds begin to consider their asset raising strategies, adaptations to the new demands of investors will be a vital part of transforming passing investor interest into actual allocations.

Predictions such as the one made by UBS Wealth management global head of hedge funds Timothy Bell who recently stated “We are gonna see decline in the number of hedge funds, we are gonna see some strategies that will not work in this environment,” have made asset raising seem pointless to many.

“Everybody has been hearing such bad news that even the money managers are losing some perspective on what is going to be happening down the road,” Bruce Frumerman, of New York’s communications and sales marketing consulting firm Frumerman & Nemeth Inc. told Opalesque.

Frumerman, who is speaking at New York City’s Marketing & Client Servicing for Hedge Funds conference this week, cites three reasons why hedge funds will maintain interest once the markets settle: