Can hedge funds salvage some reputation?

matthew lynn

It has been a terrible few weeks for hedge funds. In London, GLG Partners, one of the biggest compan...

It has been a terrible few weeks for hedge funds. In London, GLG Partners, one of the biggest companies in the industry, is under investigation. In New York, Refco, one of the main brokers, has just collapsed. Tales of scandals are pervasive. So, the gig is up, right? Time to fold up those funds and go back to that job on the trading desk at an investment bank. Well, hold on. The hedge fund industry can still salvage its reputation by policing itself better. The guys in the black hats need to be run out of town. If they are not, a system of statutory regulation cannot be far away. The ap...