Opinion

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

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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