Opinion

Cautious optimism for 2011 as tough 2010 ends on strong note

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Nobody would claim that 2010 was a great year for hedge funds

By Nick Evans

Nobody would claim that 2010 was a great year for hedge funds. For most managers it was a long, hard slog. Performance was OK – exceptional in a few cases, mediocre in many and fairly unexciting for the most part.

Asset-raising was still a struggle for all but a few – with the concentration of assets by risk-averse investors into the brand-name managers creating an increasingly bifurcated situation whereby a handful of top funds were able to close again while the vast majority of smaller operations found capital inflows very hard to come by, almost