james carthew

I spent much of the end of last year looking at the fund of hedge fund sector. Discounts were wideni...

I spent much of the end of last year looking at the fund of hedge fund sector. Discounts were widening and questions were being asked about the future of these funds even before the Madoff scandal broke but, once it had, indiscriminate selling led to a wholesale collapse in the prices of these vehicles. There is little point in holding any fund that promises to deliver absolute returns with low volatility but allows its share price to swing around. I wrote to all the London listed closed-end fund of hedge funds on 17 December. My message was simple: boards needed to act swiftly to impro...