At least eight hedge funds in recent weeks announced plans to shut down. Uncertain markets and investors with shorter-term horizons have been cited as reasons, along with difficulty in making money. The recent shutdowns "demonstrate a tough time for the industry in general, regardless of strategy," says Michele Gesualdi, a fund manager at Kairos Partners. "Probably next year it will be even worse in terms of closures, but reduced competition should help performance improve."

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