Rocky road ahead for hedge funds
Two respected and successful hedge fund groups - Galleon Group and Lucas Capital Management - have found the final quarter of 2008 to be full of unexpected and painful developments for their hedge funds. While the way ahead is not exactly clear, both believe the hedge fund model is still a viable investment alternative
Despite the fact the last two months have "thrown a wrench into the perception of long/short equity hedge funds, I don't think it has changed the underlying business model, despite the dislocation of markets. We will look back at some point and understand the business model is not broken, just bent a bit," comments Richard Schutte, chief operating officer at Galleon Group.
Galleon launched its technology strategy in 1992 with just $25 million. The original premise was to combine fundamental
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