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 cuckee.com in days ahead.