Smaller, leaner hedge fund industry expected to emerge in 2009

There appears to be a growing consensus that merger and acquisitions, further consolidation and creeping institutionalisation of the industry will accelerate in 2009. This will be caused by the serious dislocation of markets in 2008, the aftermath of which promises to be a severe recession.

The rash of redemptions at the end of 2008, the reporting of falling assets under management and the closing of many funds is being counterbalanced by some new launches and the first signs of investor interes