Conclusion
To invest in hedge funds or not to invest in hedge funds, that seemed to be the question on the minds of investors around the globe in the wake of the credit crisis. For the last three years, Congress and President Obama have wanted more regulation, the Securities and Exchange Commission wanted to be taken seriously, and managers wanted to increase assets under management in order to continue run their businesses–it has been a glorious time to be in the industry.
I do not recall a time in the fifteen plus years that I have been working in the hedge fund industry, that I have ever witnessed so many people, places, and things being focused on these sorts of investment vehicles. From insider trading scandals to the case against Goldman Sachs, it seems like every day the phone rings with stories about funds in trouble, bringing in large assets, or just going out of business. The hedge fund industry, while large in terms of assets under management, is really a small place. People do not want to hear of a fund manager going out of business or someone who sustained enormous losses, even if they are vying for the same investors and in some cases the same investments. The industry is closely knit, from the accountants and lawyers to the prime brokers and the traders to the fund managers and the investors. People know each other, like each other–for the most part, and want to see the industry continue to grow and thrive. Make no mistake–hedge funds are here to stay. The industry ...
