If the economy is going to keep getting worse, why shouldn’t hedge funds, where managers can make millions of dollars a year, share in the suffering? It actually looks like they may.
According tothe FT, hedge funds investors surveyed recently are expecting big withdrawals this year. “A survey of investors by Deutsche Bank found a third expect more than $200bn to be withdrawn, after a net $155bn was taken out last year.” To add insult to injury, the poll also found that investors expect 20% of existing hedge funds to close in 2009. That means fewer firms to take money from the Treasury to buy toxic bank assets.
Douglas A. McIntyre