The Man may be right

Hedge funds have so far been the dog that didn’t bark in the credit crisis. Despite dire predictions, they have neither been the cause of the turmoil, nor obvious victims of it. The average fund performance was down more than 2% in August, but bounced back more than 2% in both September and October, according to Hedge Fund Research. So on the face of it, Man boss Peter Clarke’s prediction that one in ten funds will fail next year looks odd. In fact, he may well be right. However, the problem is...