By Neil Wilson
Despite robust performance overall and rapid growth during
the first half of 2007, the hedge fund industry yet again finds
itself in the eye of a storm. With certain funds dramatically
wiped out by the subprime collapse, and the spillover effects
spreading across the credit spectrum into equities and causing
unprecedented problems for market neutral strategies, it seems
that hedge funds are once again being cast as the bad guys -
the usual suspects causing disruption and peril in the markets.
In the face of a daily barrage of criticism, it seems almost
fruitless to point out that many managers were actually up in
July (and some by quite a lot), while many others did a very
skillful job to constrain the downside.
The fact is that hedge funds are now seen as such a big
driving force in the markets that,...