Hendry says hedge fund industry could shrink by 80%

Eight in every 10 hedge funds could fold over the coming decade, according to star hedge fund manager Hugh Hendry.

The founder of hedge fund Eclectica Asset Management says there are "far too many hedge funds and the number could fall by 80% over the next 10 years". Since hitting a peak of 10,000 in 2006, the number of funds had fallen about 10% to 9,100 by June, according to Hedge Fund Research. About 420 funds shut down in the first half of this year. Hendry told the BBC's HardTalk there were still too many hedge funds, partly because "overall it has been too easy to make money from financial speculation". "I think I could still eke something more out of markets, but overall I think that ease...