David Williams, DLA Piper

Multi-tasking will be the key skill. The volatile markets of late 2008 will undoubtedly give rise to a host of new challenges in 2009, all of which will need to be managed simultaneously. A number of challenges are expected. Instability and uncertainty raises the prospect of investors moving to perceived safe harbour investments, presenting managers with potential liquidity issues. Recent events have increased the likelihood of further regulation of the hedge fund industry. When the dust settles, we expect there will be at least some increased regulatory intervention, whether in the form of more active use of existing powers or through new measures on disclosure and transparency. As part of their response to recent negative publicity, managers may need to consider their public face to a greater extent, taking steps to show themselves as responsible members of the financial system. All of these (and more) will distract executives from core investment management activities. The ability to handle competing, complex issues will be the key skill for managers.