Grab a piece of the hedge fund action

These are good times in hedge fund land. Not only was 2006 one of the best years ever for the industry, hedge funds have finally become respectable. So how can you get involved?

When you talk to hedge fund managers in London these days, it's impossible not to notice the spring in their step and the smile on their faces. And why not? These are good times in hedge-fund land. It's not just that the industry survived two months of market turmoil in May and June and a major hedge fund blow-up in the autumn and still posted 14% returns, making 2006 one of the best-ever years for the industry. That meant another bumper round of fees and bonuses, but that's no different to any other year. Instead, another reason why there are so many happy faces in Mayfair and St. James's (the spiritual home of the UK hedge-fund community) is that the industry has finally shed its image as a reckless menace to the financial world, bringing mayhem in its wake. Hedge funds have become respectable.

True, not many would go so far as one leading hedge-fund manager who tried to persuade me this week that what he provided was a valuable public service. The world is not yet ready to go along with the idea of hedgies selflessly toiling away for the greater good while merrily trousering eight-figure pay cheques.

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Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.