Hedge funds prosper in tumult

A MARKET sell-off that ricocheted across the globe last month reversed the fortunes of many of Wall Street's star investors. But it is not all doom and gloom in the US$3 trillion hedge fund industry.

A number of hedge funds, both big and small, are recording double-digit gains this year and putting up the kind of performances that just might justify the industry's famously hefty fees.

Among the better-performing funds are those that were started in the past several years by former disciples of Steven Cohen, the billionaire investor who founded SAC Capital Advisors.