Which strategies will make money? How will the regulatory environment change? Our editors try to forecast what the coming year holds
As 2003 comes to a close, the industry is abuzz with talk of the Securities and Exchange Commission's plan for mandatory registration for hedge funds and the mutual fund timing scandal. But what will the next 12 months have in store for all of us? Which strategies will thrive? What will the SEC actually decide to do?
Predicting the future is notoriously difficult and the simplest thing to do is to project current trends into the future. On this basis, the hedge fund industry is set to explode in 2004. Asset flows have steadily picked up throughout 2003 and, according to TASS, reached a peak in the third quarter with $24.6 billion, which is 78% higher than the previous quarter.
The most popular strategies have been long/short equity and...