Hedge fund evolution: Adapting to global market conditions March 2009 Janine Baldridge, CFA Director, Research and Strategy Lloyd Raynor, CFA Senior Consultant In 2008, many hedge fund strategies faltered under global market stresses and experienced significant underperformance relative to historical standards. Nevertheless, new opportunities have since arisen for hedge fund investors who can navigate through uncertain and volatile times.   How did the difficult market environment impact hedge funds in 2008? Various hedge strategies were impacted differently by market conditions. This article explains how and also discusses hedge strategy performance compared to the broader markets. What does the future hold for hedge funds and investors? Learn why some hedge strategies may be attractive, how leverage may continually impact hedge investments and why there could be some short-term difficulties. How can investors respond? This paper outlines four practical steps hedge fund investors can take in the current market environment. Request this Research A note about our research Our proprietary research is made available to our institutional clients, and many of these published papers are available to other institutional investors as well. If you are not a Russell client, but are an institutional investor, we welcome you to request this research piece. We only require your contact information on a short request form. For more information about our research, please contact James or Gerry:   West Coast   East Coast James Barrett Managing Director 866-926-5934 Gerry Lillis Director 866-459-4128 Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. In general, alternative investments involve a high degree of risk, including potential loss of principal; can be highly illiquid and can charge higher fees than other investments. Hedge strategies and private equity investments are not subject to the same regulatory requirements as registered investment products. Hedge strategies often engage in leveraging and other speculative investment practices that may increase the risk of investment loss. This material is not an offer, solicitation or recommendation to purchase any security. Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company. Date of first use: March 2009 USI-3391			Related Information Request this Research   Contact Details West Coast contact James Barrett Managing Director 866-926-5934 East Coast contact Gerry Lillis Director 866-459-4128 Printer friendly version of this page