Hedge funds scrambling to control situation

From antsy customers to creaking prime brokers to emboldened regulators and critics, the hedge fund industry is in scramble mode right now. We can expect more to follow the esteemed Guy Wyser-Pratte, who has blocked redemptions from his hedge fund, warning of "calamitous" market conditions, according to the Financial Times. This is going on in some form across the industry. And we're going to see a lot more small firms shut down. Rotten performances have made the hedge fund problems ever worse. As of now, the industry is heading to its worst performance since the records began. So behind the scenes, we're seeing a lot of cajoling and hand holding, not to mention anger. Investors have the upper hand these days. You can bet they are asking the tough questions they should have been asking all along.

For more:
- here's the article on Wyser-Pratte

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