GREG FROESE, LIONHART

So far 2008 has not been simple for hedge funds. Markets have been difficult (subprime crisis and climbing oil prices). The subsequent fall-out caused anomalies, gyrations and dislocations. Investors hit by their own troubled investments, usually when leveraged, often need to find liquidity quickly. Investor redemptions have hit many hedge funds and often the ones who have generated the best performance.

However, there are rays of sunshine from the East. Strong growth in India and China has boost