Baby Steps

HEDGE FUNDS

Excitement hit a fever pitch when hedge funds first hit the scene in Germany in January 2004. Expectations ran high and industry observers predicted that within the first year there would be around $10 billion invested in this relatively new, exciting, and potentially highly profitable area. In reality, these projections turned out to be wildly overoptimistic.

According to Denise Valentine, senior analyst at Celent, a market research firm, there are currently 35 registered hedge funds in Germany

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