Quantitative Update 2009
The international asset management research firm reports in the July “Cerulli Edge–Global Edition,” that while it took the hedge fund industry nearly three years to accrue these assets, it took less than six months for most of the money to be exhausted. Cerulli contends that it will take up to five years for the industry to recover those assets.
The damage was not limited to established economies, and the magnitude of the global loss seems to stupefy even the most fervid supporters of the decoupling theory of economic activity. The theory, which states that emerging markets will be less affected than mature markets, seems to have been debunked at least in this case, by the almost biblical breadth of this collapse.