The hedge
fund industry can survive the credit crisis despite the recent damage
to the sector, the chairman of the Hedge Funds Standards Body told the
CESR conference on Monday.
"These people (hedge funds) will possibly prove to be more resilient than people thought," said Antonio Borges, chairman of the Hedge Funds Standards Board.
"Looking forward, we have to conclude that the hedge fund model will remain quite powerful, in my view. It has a very low leverage," he added.
Borges said the nature of the financial industry meant only the best-run hedge funds would survive the current market turmoil.
"For the future, it's very important to let the model survive. It's a very Darwinian model where only the best survive."
(Reporting by Sudip Kar-Gupta)