Friday, 22 August 2014
Last updated 10 hours ago
Nov 21 2007 | 8:04am ET
When the dust from the credit crisis clears, Peter Clarke expects to see an awful lot of casualties.
The Man Group CEO says he expects more than 10% of hedge funds will have gone out of business by the new year; for every high-profile disaster, there is plenty of “quiet withering” going on. Worse, he told the Financial Times, the credit crunch has also put the brakes on new hedge fund launches, which are down by a third.
“Historically, the hedge fund world has seen somewhere between a 5, 6, 7 percent attrition rate in terms of funds closing or ceasing business; I would expect to see that, and this is a pure guess of course, maybe reaching twice that,” Clarke told the FT.
Clarke says his firm, the world’s largest listed hedge fund manager, is concerned about the decrease in launches.
“To some extent [the slowdown] is bad news for us because clearly we like to have an inventory of people to allocate money to,” he said.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note