Reuters UK – The fund of hedge funds industry is being forced to reinvent itself after the Madoff scandal and hefty client outflows, and will emerge from the crisis smaller but in better shape than many had expected.
Investors pulled more than $150 billion (92 billion pounds) from funds of funds in 2008 and 2009, according to Hedge Fund Research, but these portfolios, which charge an extra level of fees for selecting a basket of managers, are developing tactics such as changing staff, overhauling risk monitoring or offering investors easier access to cash, to rebuild their reputations and maintain fees.
