Financial Times FT.com

John Authers: The test was a big “If” – and hedge funds failed

By John Authers, Investment Editor

Published: September 14 2007 15:10 | Last updated: September 14 2007 15:10

Rudyard Kipling famously wrote that if you can keep your head when all about you are losing theirs and blaming it on you, “you’ll be a Man, my son”.

Hedge fund managers conspicuously failed Kipling’s virility test last month. Their quantitative models lost their heads while others kept theirs. And now, everyone is blaming the summer’s equity volatility on them.

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