Market events this past month - from the U.S. government
support for Fannie Mae and Freddie Mac to the filing for
bankruptcy by Lehman Brothers and the bailout of AIG - have
come so thick and fast they have no doubt left many outside the
hedge fund world reeling with bewilderment. But within hedge
fund land, there already was an acute focus on just how well -
or badly - hedge funds, individually and collectively, cope
with the market turmoil. Everybody knows that how the funds
perform through this treacherous period is likely to be crucial
to future prospects in a much-changed financial world.
After the first half of the year, I felt on balance that
hedge funds had generally done not too bad a job of coping with
truly challenging conditions. Of course, some had major
problems - such as Peloton Partners, which imploded so...