Challenges abound in 2009

Liquidity and leverage are two main concerns of the hedge fund industry for 2009. Prime brokers are looking at a new business model as competition from custodial banks couples with hedge funds embracing multiple prime brokers. Whether or not shorting bans are extended, it is clear that more regulation is on the cards.

Restructuring, liquidity, leverage

Over the next few months people will rethink the hedge fund model, believes David Butler, founding member of Kinetic Partners. "Some models just wi