The death of the hedge fund is much exaggerated

Columnist: matthew lynn

We always knew the financial markets were subject to violent, often neurotic, mood swings. Even so, the speed at which hedge funds have turned from the stars to the dogs of the investment universe has been startling.

A few months ago, everybody was starting a hedge fund. Now, it seems, nobody wants to go near them. The quoted funds have come up with disappointing results. Hedge fund indices are dropping. In London, analysts say the bubble is popping.

Yet, as Mark Twain may have put it, the death

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