The perfect storm of high volatility, withdrawals and liquidity problems that has hit hedge funds will soon subside,
By the end of the first quarter, anyone who has to get out is out, and anywhere around there, I think we will see the beginnings of institutional inflows into the hedge fund community, he said.
Clarke also said that in light of the strong returns that hedge funds have enjoyed in recent years, this years difficulties are merely a temporary setback.
That said, Man Research Director Thomas della Casa said there will be large-scale consolidation in the hedge fund industry, with the number of funds shrinking by about 50% from its current 10,000 level to 5,000. The largest funds are the likeliest to come through this storm, della Casa said.
Through October, hedge funds have averaged declines of 15% year-to-date, while hedge funds-of-funds are down 19% in that timeframe, according to
Separately,