Will 2012 be better? It needs to be


Unlike in late 2008 – there is not (yet) any wide-scale sense that the industry is facing an impending tidal wave of redemptions

By Neil Wilson

The 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 challenging.

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