Funds face tough climate as investor confidence wanes

Investor confidence has taken a severe battering. The financial crisis of 2008 culminating in the biggest fraud of all time, the $50 billion Madoff scandal, has dented the reputation of hedge funds and eroded goodwill and investor confidence. There is no doubt that hedge funds will remain to attract investor money and, despite the setbacks, they are likely to gather in even more assets in the coming years. However, to regain confidence and reverse the outflow of funds, hedge fund managers wil