Salient to Investors:
Charles Morrison at Altus Partners there are still many more candidates than jobs.
Hedge Fund Research said poor returns and difficulty raising money caused 873 hedge funds to liquidate globally in 2012, the most since 1,023 closed in 2009.
John Purcell at Purcell & Co said smaller firms and startups are exposed: if they lose assets, they struggle to raise them again, and in nervous times there is often a flight to quality both for employees and investors.
Saleem Siddiqi at Musst Investments said one reason why traders sometimes fail to make the transition to hedge funds from banks is the focus on short-term performance. Siddiqi said a bank’s objective is to make money by year-end, without outside clients scrutinizing monthly losses; while at a hedge fund, a down month can weigh on money managers, affecting their risk appetite and their conviction behind a trade.
Herve Gallo and Thomas de Garidel-Thoron at Occitan said they underestimated the impact of policy makers and governments to damp the crisis, not only on equity prices but also on the regime of volatility.
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