Australian IT- Up to 1000 hedge funds around the world could collapse as the industry consolidates, casualties of the rush of long-short equity funds that entered the market during the global bull run.
HSBC’s global head of hedge funds, Patrick Tuohy, said yesterday that the role of hedge funds had become greater in directing trade, as the market endured one of its greatest ever routs.
He said the ease with which hedge funds were set up while the market was strong had created a number of players who would not survive the current downturn.
"To be honest, we see this (consolidation) every 10 years and it’s actually very, very healthy," Mr Tuohy said.
