April 16, 2007 DETROIT  Despite being associated with one of the largest hedge fund implosions in recent memory, the multistrategy hedge fund model continues to represent the gold standard for muchof the $1.2 trillion industry.
OAS_RICH(“Middle”); <a href=”http://oas-central.realmedia.com/RealMedia/ads/click_lx.ads/www.investmentnews.com/article/70416003/15620892959/1120366084/Middle/crain/INO_COMMONWEALTH_LREC_ROS_0107/IN_transition.html/64313363623166313435633761366230?http://www.commonwealth.com/email_campaigns/ads/Commonwealth_trans_406.asp” target=”_blank”><img src=”http://a248.e.akamai.net/6/800/1129/1171489744/oascentral-s.realmedia.com/RealMedia/ads/Creatives/crain/INO_COMMONWEALTH_LREC_ROS_0107/IN_transition.jpg” width=336 height=250alt=”Click Here” border=0></a> It was just six months ago that Greenwich, Conn.-based multistrategy fund Amaranth Advisors LLC, worth $9.2 billion at its peak, lost $6.6 billion due to a lopsided weighting in natural-gas investments.
Although the multistrategy model could be uniquely vulnerable to the kinds of risks that ultimately brought down the Amaranth fund, it continues to gain converts across the alternative-investments community, some industry analysts say.
