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Investors warned of repeating hedge fund mistakes

Date: 23 Feb 2010

Investment consultant Aongus O’Gorman is sceptical that investors have learned the lessons of the financial crisis as the market makes a cautious return to hedge funds.

Keywords (click to search): [hedge funds] [Aongus O’Gorman] [Round Tower Solutions]

Pamela Tang
Investors may not have fully absorbed the lessons of the global financial crisis and risk making the same mistakes as the market cautiously returns to hedge funds, a senior industry figure has told asiamoney.com.

The global hedge fund industry has undergone a sea change over the past two years. Market volatility, a sharp fall in liquidity and the rapid retreat of investors spelled doom for many funds. Some 310 funds in Asia closed in 2008 and 2009, according to Eurekahedge.

But as markets have bounced back, interest in hedge funds has started to return. In December last year the industry in Asia saw US$13.4 billion of inflows versus US$12.81 billion of redemptions.

This revival in sentiment has one senior industry figure...

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