Despite the proliferation of hedge funds, the next 18 months will be crucial for the hedge fund industry.
Since the end of 2001, asset flows into hedge funds have been falling, suggesting that the so-called hedge fund 'bubble' may be over.
The most recent figures for the fourth quarter of 2002 from Tremont TASS show, for the first time since 2000, the net asset flow was negative. During this period $696m was redeemed from hedge funds.
Since the mid-1990s the hedge fund industry globally has ex