PETER HUGHES, APEX FUND ADMINISTRATION

The first half of 2008 has been difficult for most hedge fund strategies. There have been few places for investors to find some shelter from declining global markets.

Hedge funds usually like some volatility in the markets to add their value but markets with such unpredictable swings are making it difficult for most managers, except those long oil or shorting the credit squeeze.

Institutional allocators and pension funds may turn away from hedge funds and look elsewhere to make the sufficient retu