Hedge Funds Predicted To Go Bust at a Rate of 10% Per Year

The Centre for Economics and Business Research predicts that hedge funds will go bust at an annual rate of 10%. That is about 800 per year as measured from the current number of hedge funds (8,000 or so).

Further, the research suggests that over the next two years, an additional 20% of all hedge funds will close "since economic conditions are likely to be at best average for the funds." That amounts to another 1,600 hedge funds blowing up.

Source: Evening Standard, May 19, 2005