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By Benedicte Gravrand, Opalesque London: A roundup of last week’s hedge fund launches, closures, index performance, trends, regulatory, legal and financial events pertaining to the alternative investments world.

Last week, we heard of fund launches from Da Vinci and Salus Alpha.

U.S. hedge funds will be allowed to borrow from the Federal Reserve for the first time under a $200bln programme intended to support consumer credit.

Fortress cancelled its dividend payouts; Meriwether is to cut staff as the flagship fund fell 42% YTD. UBP threatened to put in immediate redemptions for any fund that does not have independent administrators and custodians.

Magnetar is to limit fund redemptions after posting losses of 30% YTD; and Australia’s HFA’ shares tumbled to a record low of 5 cents after halting redemptions.

The following trends and forecasts were noted: the Madoff fraud could mean the end of the hedge fund industry as investors know it, and may force further regulations; the industry could become much smaller again, which could be healthy.

On the M&A scene, JPMorgan acquired two UBS units: Canadian commodities energy and global agricultural business.

It was said that the arrest of Madoff had shaken up the way hedge fund indices were calculated, meaning returns from the sector might be even worse than previously thought; and that flawed managed accounts had failed Madoff investors.

Investigators found Madoff had also been running a hybrid fund, which may mean more potential losses; Madoff victims may have to return 6 years of profits and principal; Tremont Group and Fairfield Greenwich were sued by investors; an attorney representing 20 clients planned to bring legal action against the feeder funds that had invested in Madoff; Connecticut’ state attorney general might investigate charities for due diligence shortcomings. The media reported on 24th ......................

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