CNN – A flurry of bad news this summer in the U.S. hedge fund industry, including the shuttering of big name funds like Stan Druckenmiller’s Duquesne Capital Management, led to more pessimistic predictions about the future of hedge funds. Amidst all the turmoil in the U.S. came the announcement early this month of China’s first domestic hedge fund.
The fund’s splashy media debut probably oversells its ultimate significance — there are already many hedge fund-like structures in China, and countless structural problems limiting the growth potential of the industry. But it’s nevertheless an important event, as it comes as a signal of loosening regulation in the Chinese alternative investment space — and perhaps also as a rejoinder to Wall Street-centric analysts predicting doom for hedge funds.
