Colin McLean, SVM Asset Management

2009 should bring good opportunity for the surviving hedge funds, both in longs and shorts. Sectors do not all recover at the same time. Next year there will be some downward trends even as leading sectors recover. Analysts must focus on balance sheets rather than earnings. The key skill will be risk management: controlling the balance of a fund against a background of high volatility and sharp sector rotation. Stock market metrics such as price/equity and yield, have proved misleading in as