The Australian – David Gray, UBS’s head of prime services in the Asia-Pacific, says:  "In the next three months, people will make decisions about whether they want to continue their business that may prove uneconomic for them," Hong Kong-based Mr Gray said. "Fund managers are quite a hardy lot who don’t give up easily; they’ve gone through a couple of crises."

About 20 per cent of hedge funds in Asia, which underperformed rivals in the US and Europe, are profitable this year, according to Mr Gray. Their performance diverged from declines of 40 per cent to gains of 20 per cent, he said.

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Reuters- Billionaire hedge fund manager George Soros said on Wednesday the current rebound in stock markets is only a bear market rally because monetary authorities are unlikely to be able to handle the credit crisis.

Soros told a seminar at the London School of Economics, "The prevailing market opinion is that this crisis is like previous ones. … Markets have been rallying on that. But I think it’s actually just a bear market rally based on a false conception the authorities can handle all these crises.

"This time the ability of the authorities to handle the crisis is constrained — they’ll not be able to avoid a recession," he said.

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