Hedge Funds: 30 percent could go in banking fiasco

According to Emmanuel Roman co-chief executive officer at GLG Partners Inc., 30 percent of hedge funds could go globally. Roman said that many hedge funds would either go bust or decide that the poor profits were not worth the effort according to several tabloid reports.

New York University Professor Nouriel Roubini also said that hundred of hedge funds will fail and it’s possible that policy makers will have to shut financial markets for a week or more as the crisis continues to force investors to dump assets.

In July 2006 Roubini predicted that America would enter an economic recession, and he also predicted just February this year that there would be a financial meltdown that would be to catastrophic for the central banks to prevent and that it would lead to bankruptcy in large banks.

The hedge fund industry has seen its worse year in two decades, with September being hit the hardest with the biggest monthly fall in a decade.

Roubini also added that things will get a lot worse before they get better talking of the financial crisis that is in Europe and the US and now emerging markets.

Source: Bloomberg