A difficult 2002 creates smaller, stronger market

An expected 33% jump in the number of hedge funds closing in 2002 compared to 2001 should leave the survivors in a strong position to prosper, according to index provider Tremont.

Barry Colvin, Tremont's president, said from a market perspective 2002 was 'one of the most difficult market environments to navigate. But those who have navigated it are in a very good position for 2003,' he said.

The difficult environment for hedge funds in 2001 proved particularly damaging to small hedge funds.