Have faith in hedge funds, says IAM boss

THE CHIEF executive of £2.8bn International Asset Management has hit back at the “loss of faith” in hedge funds after the industry endured a grim August.

Morten Spenner, who runs a fund of hedge funds, said the sector had generated consistent returns and dampened volatility since last year.

“Since the debacle of 2008 and the ‘bounce-back’ year of 2009, returns have been dull and many have ‘written off’ hedge funds. That said, the performance experience from January 2010 to date has matched the main expectation of clients,” Spenner said in a statement.

SAC Capital Advisors, Third Point Offshore Fund and T2 Partners were among the losers in August despite the slump in financial stocks that helped many hedge funds make gains during the banking crisis.

The industry has matured since 2008, Spenner added.

“Transparency, liquidity, and investor control have all been much enhanced.”