Extreme market volatility so far this month is posing a key
question for investors: Could this be another 'black
swan’ movement for the hedge fund industry?
As fear gripped the market last week, hedge fund managers
could not help but ask themselves whether they were witnessing
a horrific replay of the 2008 meltdown that shook the industry
to the very core – and ushered in an increasingly
fettered landscape where regulators are now resolved to keep
much closer tabs on the industry.
In Asia, the fear grew more palpable as problems gripping
the United States and European markets seemed on the verge of
morphing into a global contagion that could crush the gung-ho
confidence that had so far – this time around
– insulated Asian markets.
Last week, stock markets around the world resumed their free
fall as fears mounted on the implications of the downgrade of
the United States government long...