More Hedge Funds might go down as the US subprime saga unfolds

The likelihood of more hedge funds cropping up their necks with heavy losses has gone up with the recent Goldman Sachs top up of $ 3 billion into one the hedge fund managed by them.

The hedge fund industry, in the recent past, has seen a growth trajectory unheard of in any other financial markets. However all this seems to be changing now with the US sub-prime mortgage blowing into the face. By the beginning of the next financial year the failure rate of the hedge fund industry is expected to hit around 15-16% – up from current 8%.

With greater redemption pressure from the investors, the markets ahead might see even more turbulent trading weeks.

Watch out for more on this at in days ahead.