What Lies Ahead For HF Industry

Date: Wednesday, September 5, 2007
Author: Hedge Fund Daily

With the summer of hedge fund discontent coming to a close, The Wall Street Journal has looked into its crystal ball to see what lies ahead for the battered industry. One does not need to be a fortune teller to surmise there has been substantial pain and suffering, but less clear are the new contours that will shape the industry in the short term. Simply put, according to The WSJ, volatility will be hot, big names and activist funds will not. The paper reports that hedge funds such as Titan Capital Group will see colossal results from its bets on rising volatility. Returns at the hedge fund rose 10% in the past three months, says The WSJ, citing a source close to the firm, as investors are expressing growing interest. In addition, distressed-debt specialists such as Eton Park Capital Management and Citadel Investment Management, are likely winners, as hedge funds in this area, The WSJ reports, “could see the best opportunities in years,” though junk-bond traders says it’s not bargain-basement time yet. Other trends