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By the Opalesque Team:

A book by Patrick Artus and Alexis Garatti, 255 pages.

A book came out last week in France, which title can be translated as: “Why England has lost” (Pourquoi l’Angleterre a perdu). It’s nothing to do with football, but everything to do with the country’s so-called hedge fund culture.

The two authors, both French economists working at the French investment bank Natixis, wonder if the financial crisis will destroy the British model, which makes this country a “hedge fund country,” reported Swiss daily Le Temps on 17-August-09.

They explain the parallel of alternative funds to the flexibility which is at the heart of the British model. Unlike more specialised countries such as France (armament and aviation), Germany (equipment goods) or Japan (electronics), Great Britain wants to be able to change its options if new opportunities arise. This way of thinking is similar to that of a hedge fund, which continually modifies its exposure according to circumstances.

Le Temps goes on to say that this demand for flexibility necessitates a focus on activities that have little need for capital. The country came out of the manufacturing industry and has since steered towards finance and technology, and this model, which was born during the Thatcher era, was maintained by the Labour party - for good reasons as it has obvious advantages.

But according to the authors, it also has obvious......................

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