Crunch survival: living on the hedge?

What have hedge funds done to navigate the maze of the credit crisis?

Over the past year we have witnessed an unprecedented crisis for hedge funds. Assets under management have been in free fall, partly due to poor performance, partly due to fleeing assets trying to rescue some value, or trying to meet obligations elsewhere, primarily in real estate or private equity. To understand what hedge funds have done to survive the credit crisis, we have to look at what happened during the crisis. Money had been pouring into hedge funds over the course of several years, doubling the assets under management in half a decade. Hedge funds had been able to manage inves...