Each year, the middle of the year finds the hedge fund industry voice with a different 'tone'. In 2004, its tone was one of quiet confidence. Minor misgivings came from some that the institutional 'wall of money' would dampen returns, that the cash plus 14% of 1996-1997 would continue downwards (as indeed it has) towards a cash plus 4%-6% this year. However, performance was acceptable, nonetheless.
Then in the middle of 2005, the industry's voice carried a not-insignificant note of alarm.