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Komfie Manalo, Opalesque Asia:

Ian Hamilton, Founder & Group Chief Executive Officer of IDS Fund Services said that hedge fund managers should know their limits and choose to close a fund at the right time to new investors. They should not try to turn themselves into "huge investment houses".

Speaking during the latest Opalesque Zurich Roundtable, Hamilton said hedge fund managers need to have the discipline to realize: "I’m going too fast, so I am going to turn away money."

He explained, "I have seen a lot of failures where a manager had a good working strategy, and then he gets greedy and grows and grows until he blows ups completely. When you have more and more institutions posing as hedge fund managers there is danger to the hedge fund industry. I sometimes say that an institution in the hedge fund industry is an oxymoron. Institutional investors create market inefficiencies that smaller hedge fund managers can capitalize on."

Hamilton said that there are really two classes of companies in the hedge fund industry. One is the asset gatherers who rely on 2% management fees, and the performance chasers, which are the true hedge funds.

David Beddington, founding partner of alternative investment firm Dacharan, agrees that sometimes greed comes in the way and hedge fund managers forget the discipline of turning away new in......................

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