On the brink of a stampede

The European pension industry is turning ponderously to consider the world of hedge funds, and observers are increasingly concerned about the ability of the fledgeling asset class to cope with a large increase in demand.

The relative immaturity of both the hedge fund industry and some of the underlying markets in which it invests has already raised doubts about the ability of some strategies to sustain performance, and the pool of investment talent is still relatively small.

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