Peter Fitzgerald

“At the time of writing, it is pretty clear that hedge funds did poorly in September. The full damage will not be known for a number of weeks as prices are released and fund of funds subsequently release their prices. They have been hit by changing regulations (ban on short selling), the collapse of Lehmans (returns of –100 per cent for some funds as Lehmans ‘borrowed’ their assets), which acted as prime broker for some funds and a rush to raise cash as they anticipate large redemptions. We believe we have avoided most of the disasters but this episode will scar many investors for some time and fundamentally change the investment world.”