Barry Cohen, special reports editor, HedgeFund Intelligence
Like its counterparts throughout the rest of the world, the Canadian hedge fund industry suffered a severe blow as a result of the global financial meltdown. Overall assets, which stood at $37.4 billion at the start of 2008, are estimated to have fallen below $20 billion. However, according to the Alternative Investment Management Association of Canada, the actual number of managers and firms has remained steady – so far – as launches have compensated for those funds which were forced to close.
The HedgeFund Intelligence database estimates that the 96 Canadian hedge funds which it monitors delivered a mean return of -13.48% in 2008. Historically, the dominant hedge fund strategy has been long/short equity with a particular emphasis on commodity and resource funds. Given the devastation of the...