Nick Evans, editor, EuroHedge
If ever a year could be described as one of two
halves, 2007 was surely it. In Europe, as in all developed
markets, life for hedge funds changed dramatically halfway
through the year and it has remained changed ever
A generally benign financial market and economic climate in
the first half of 2007 began to turn increasingly volatile and
treacherous from July onwards as the US sub-prime mortgage
market finally rolled over, the credit crunch started to spread
and chaos ensued in the banking sector.
By the end of June, the EuroHedge Composite Index return
stood at 6% for the year. By the end of the year, it had risen
to just 7% underlining how difficult market conditions
had become in the second half of a very turbulent year as
virtually all asset classes became contaminated by the turmoil
in the credit markets.