How hard has the credit crunch been on hedge funds? Financial News Online reports that just 10 percent of funds are taking performance fees right now. The rest are below the so-called high water mark, the point at which they can take their cut of the profits. The worst hit funds seem to be long-only absolute return funds; more than 96 percent are below their high-water mark. Futures managers seemed to fare a bit better, but still more than 80 percent were below the mark. So much for making money in good markets and bad. We're likely to see more hedge funds go out of business. Small hedge funds especially will be pressured. Oh, how the glory years have ended.

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