Hedge Funds are Smaller Plus More Flexible in the Times of the Bernie Madoff Scam

  

Hedge funds formation were dormant through most of 2008, says Brian Hunter a partner in a Bermuda based law firm Appleby Global who structures and advises hedge funds accounts .  Fifteen percent of funds were down this year in 2008 the industry reported 1.3 trillion in assets under management compared to 2 trillion in 2007.  Investors began spending money in new hedge funds this year which are different from the traditional ones that proliferated during the boom years.  Many new funds are for distressed investments: debt, and investments taking full advantage of governments Term Asset Backed Securities Loan.  Also managers are going back to the fundamentals like traditional long/short equity funds.  These new funds are also more flexible about securing investors money.  After the Bernie Madoff scam and a struggling economy there had to be some creative changes in the market to restore investor’s confidence.  Mr. Dontknow suggests they name the new set of regulation for better transparency in the market the Bernie Madoff rules.   I’m sure he is not the only one on Wall Street who used these criminal tactics and got away with it for so many years.  Someone has to take a fall.  Bernie Madoff number came up but the test of time will be the true measuring stick for how these new Hedge funds perform.  Respectfully Mr. Dontknow

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