How has the hedge fund industry been affected by the financial meltdown?
Apart from the fact that many have folded because of disastrous financial returns, while the glamour of the industry has somewhat faded, hedge funds are still a viable business that is attracting heavy investors.
Invested funds are now a little easier to get out from. Investors have more leeway with management and can be more particular with regard to terms on withdrawal of their investments.
However, hedge fund charges are not much lower. Management fees generally are still set at 1½% of managed assets and 20% of profits generated. Sought-after funds charge even more, as in the past.
Hedge funds operate in different ways with varying objectives. They have a tougher row to hoe in this economy. But they remain a factor because only they in the investment industry, have the REAL speculative funds these days
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