Could hedge funds serve as a blueprint for the finance industry?

Wed Dec 5, 2012


The continuous ignorance of various non-investing constituencies towards hedge funds remains mindboggling


 
  Alexander Ineichen, Ineichen Research and Management
One of the agenda items of the G8 summit in Heiligendamm, Germany, in June 2007 was the systemic risk hedge funds pose to the financial system. How funny is that? It turned out that it was the heavily regulated banks, not lightly regulated hedge funds, which brought the system to its knees more than a year after the summit. Hedge funds and their investors in fact were the victims, not the perpetrators, of a highly regulated house of cards that came tumbling down.

Nevertheless, the continuous ignorance of various non-investing constituencies towards hedge funds remains mindboggling and is one of the reasons AIMA initiated an update of its 2008 Roadmap to Hedge Funds. Rather than negate hedge funds, the hedge fund industry could serve as a blueprint for the entire financial and investment management industry.

There are four areas were hedge funds could...

ISSN: 2151-1845 / CDC10004H

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