Financial Times FT.com

Extinction predicted for a third of hedge funds

By Chris Hughes in London

Published: October 23 2008 21:02 | Last updated: October 23 2008 21:02

The hedge fund industry will shrink by almost a third as tens of thousands of groups are forced out of business, a leading practitioner warned on Thursday.

Many hedge funds have been hit badly by the credit crisis, as falls in the value of their assets have forced them to liquidate portfolios that have been funded with borrowed money, while investors have demanded their money back.

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