Elephantstrunk

FT.com / Comment & analysis / Letters - Hedge funds are designed to recognise and manage risk
From Mr Christopher Fawcett.

Sir, We must take Eric Anstee, chief executive of the Institute of Chartered Accountants in England and Wales, to task over his remarks about a possible hedge fund failure hitting confidence in savings (Letters, November 16). He is confusing retail savers with institutional investors and does not acknowledge the reason for the growth/size of the hedge fund industry….

Mr. Fawcett of the AIMA continues predictably but his opening paragraph is bang on. Neither LTCM nor Amaranth has done anything like as much damage as any one of pension mis-selling, Equitable Life or endowment policies. The Peter Young affair and the market timing scandals show that regular funds.

There may be problems with hedge funds but Anstee is way off target.