"Now this is not the end," said Winston Churchill in his
Mansion House speech at the end of the Battle of Egypt in 1942.
"It is not even the beginning of the end. But it is, perhaps,
the end of the beginning." Much the same could be said of the
hedge fund industry. After all, many funds fought lengthy
battles of their own in 2008. Some lost. Many more emerged
wounded, bruised and bandaged, and with rather less hauteur
than they had prior to the summer of 2007. Such was the damage
sustained by the hedge fund community during the crisis that
some commentators even asked – albeit rhetorically
– if the industry could survive. "H2 2008 marked a
clear discontinuity in hedge fund performance," Merrill Lynch
observed in its annual review of the European asset management
industry, published in February. "Will we see the wholesale
extinction of what was...