The sector is also replete with fraudsters impostors or simple thieves

Cultures are sometimes with rye grass shoots, their toxic seeds is then confused with those of wheat. If we dare the comparison, the field of "hedge funds" looks more like a field of tares just sprinkled with a few "good seed" of wheat. As about 10,000 of these funds around the world, only 10 are in accordance with the principles of the sector. Separate the wheat from the chaff in this area requires therefore both rigor and high flight skills.

At a minimum, a "hedge fund" should adhere to three principles: invest in liquid products at advantageous prices. neutralize the adverse risks by techniques of coverage ("hedging") as short selling ("short selling"); align the interests of the clients on those of the Manager, which must both be investor in the Fund and investment company owner.

Unfortunately, the term "hedge fund" is often usurped, negative risks being frequently not neutralized and occurring sometimes amplified by levers. The sector is also replete with fraudsters, impostors, or simple thieves. Some traditional funds ("long only") are even disguised as "hedge funds", while for other "false"hedge funds"" are more in actuarial, and banking activities as loans to credit cards, automobile leases or contracts of life insurance. And some still fall into unique categories, like the Asset Based Lending (ABL), dedicated to factoring (factoring").

For the whole of the year 2008 will remain one of the worse in terms of performance management. And the increase in economic and financial risks, and the virulence without precedent of systemic, operational risk or regulatory such as for the prohibition of short selling who are the main causes. Also the 'hedge funds' managers they have juggling with counterparty risks, limit the risk of financing or call ("margin call"), that anticipate repayment, or liquidity risk. As a corollary, the type Manager was spend more time in the administration of its funds, the negotiation of their banking relationship, or the analysis of operational flows, to the management of the assets.

This General cataclysm has yet come to add, in December, the hurricane of scandal of the $ 50 billion engulfed in the Bernard Madoff Ponzi scheme Fund. The crisis of confidence in the field of "hedge funds" thus reached its climax...

If he had to take a lesson from the disastrous vintage of 2008, it is would summarize the single precept to which we adhere in several years: buy "hedge funds" simple structures (which it is) and reject those with complex structures (which it does not include).

It is still that this series of disasters today opened new opportunities for investors in this area, some of the best managers of "hedge funds", previously inaccessible, to give access to their vehicles of investment to new subscribers. And, to much more favorable terms, after having them also accused of massive withdrawals, in the wake of the panic wind blew on the sector.

Moreover, relaxation in many markets offers many opportunities, including at the level of the risk and premiums "spreads" of arbitration, both on the currency markets on the bond markets of raw materials, actions or even credit to these qualified managers. They should continue to outperform in many financial markets, while providing a protection of capital on a market cycle.

A careful selection of the best "hedge funds" global should raise today desire of investors. From the point of view of the most promising investment strategies, a selection rigorous Fund, for example in the fields "macro" and "long-short", now offers excellent prospects. Remember finally that, over time, the low correlation of "hedge funds" with traditional assets in terms of tools of economic diversification.