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By Benedicte Gravrand, Opalesque London: See yesterday’s 2009 outlook (4) here.

Morten Spenner, CEO at FoHFs house International Asset Management (IAM), said the challenges the hedge fund and FoHFs industry faced last year consisted of:

1. Combination of bank failures, de-leveraging and recession; 2. Illiquid securities in a falling market; 3. General misunderstanding of the industry.

Some industry insiders have been predicting, for the hedge fund industry, more high water-mark or hurdle rates; more managed accounts; self-regulation or more regulations; more disclosure and transparency; liquidity matching underlying assets; PE-style conditions such as long lock-ups and lower fees; and small boutiques in a much reduced industry with much less capital.

For Spenner, it is the value of a true partnership between manager and investor, as well as transparency, which will be of upmost importance for the hedge fund industry in 2009.

There is a distinct need for more suitable, personalised portfolios which provide a better mix for the client's full investment portfolio. Indeed, IAM gives investors 80% control over their portfolios.

In favour of segregated accounts and full transparency "2008 was a story of more than just drawdowns”, wrote Spenner in an e-mail communication to Opalesque. “Investors fully recognized a preference for greater control of thei......................

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