According to mutual and hedge fund research provider TrimTabs Investment Research, the hedge fund industry lost roughly five per cent ($43 billion) of its $2 trillion assets in September due to investor redemptions. Combined with the impact of such a harsh market environment on investment performance and an ongoing SEC ban on financial sector short-selling, investor withdrawals have set up the hedge fund industry for a battering of unprecedented force.

As in the late summer of 2007 when funds

To continue reading...