Word on the street and common sense suggest the following short- and medium-term future for hedge funds:HT: Market Movers1) On average hedge funds will probably have done not much better or worse than the market as a whole. However, that average performance will hide a lot of extremes. Many funds, thanks to lady luck and leverage will be up record amounts. But that means many funds will be down record amounts too, and the downside is severely limited by zero! Therefore expect to see many funds announcing blow ups soon, maybe 30% of funds will close up shop for one reason or another.
2) After the blow ups expect to see the lawsuits....MORE