The hedge fund industry could be heading for a crash similar to those experienced in 1994 and 1998, according to David Smith, chief investment director of GAM.
There are too many inexperienced hedge fund managers taking a chance in the industry and misleading investors with promises of high returns of absolute returns, said Smith. There is also a danger that an interest rate rise could catch out inexperienced managers, he added.
He likened the present situation to 1998 when the collapse of Long
The week on Risk.net, December 9–15 2017Receive this by email