Hedge Funds Will Have a 'Glorious Resurgence' Says CFR's Mallaby

The video discusses the impact of deregulation on economic growth, highlighting potential benefits and risks, such as environmental and financial stability concerns. It then shifts focus to the hedge fund industry, examining its current challenges and potential resurgence. The hedge fund model is praised for its incentives, which encourage thorough research and risk management. Despite recent difficulties due to quantitative easing, the video suggests that hedge funds may experience a revival as market conditions change.

What is one potential benefit of deregulation mentioned in the video?

• Reduced market competition

• More company investments

• Higher taxes

• Increased government control

What is a reason for the decline in hedge fund popularity?

• Increased government subsidies

• More market stability

• Higher returns

• Increased redemptions

What is a key incentive for hedge fund managers to perform well?

• Guaranteed profits

• Fixed salaries

• 20% carry

• Government bailouts

What has dampened the pricing of risk for hedge funds in the past decade?

• Higher interest rates

• Lower inflation

• Quantitative easing

• Increased competition

What is the expected outcome for hedge funds as the influence of the Federal Reserve diminishes?

• Stable performance

• Continued decline

• Glorious resurgence

• Complete shutdown