By Neil Wilson
hedge fund industry has just endured another gruelling year -
the second worst year on record (after 2008), and the second
negative year in just the last four. Last year's stop/start
pattern of 'risk on, risk off' in the markets clearly took its
toll. And the outlook ahead continues to appear
Yet, strangely perhaps, the immediate outlook doesn't seem
so bad as in late 2008. I say 'strangely' in part because the
relative returns had been much more pronounced in 2008. In
2011, hedge funds again did better on average than global
equities but, with a mean average return of nearly -4.5%
according to the HedgeFund Intelligence indices, it was not by
such an impressive margin.
Perhaps the outlook seems better because we have got used to
living in a semi-permanent state of crisis. In the immediate
term, however, the more important...