Tussle over alpha

Alternative Investments

Hedge funds have had a torrid year. Low levels of market volatility at the start of 2005, unexpected shifts in credit correlation in May, and a clamouring for more regulatory oversight from the mutual fund business, have posed significant challenges for managers at hedge funds. Meanwhile, the once-burgeoning structured fund-of-hedge-funds business has faltered in a low interest rate environment where hedge fund performance, while still far from poor (SG's Lyxor managed funds produced