Keith Haydon, FRM Capital Advisors

Ultimately the most important attribute a hedge fund manager can have in this scenario is experience. Managers that survived the difficulties in 1998 and learned the lessons have a better understanding of both the technical effects of leverage and how to manage a balance sheet correctly in a deleveraging environment.

With the continued weakness in the investment banking sphere, the successful hedge fund also has to understand how term financing relationships work and know who are the "weak hands"