A majority of hedge fund managers predict that the U.S. economy will experience a recession in 2008, according to a survey conducted on behalf of CPA firm Rothstein Kass.
From the press release: “Over 61% of hedge fund industry principals surveyed indicated that a recession in 2008 is a ‘very likely’ scenario. Hedge fund industry principals also anticipate continuing market volatility through the remainder of 2007. Approximately 87% of those interviewed predicted that market volatility will increase or continue in the rest of the year.”
We’ve been hearing a lot of these predictions lately, but it’s beginning to move from soloists into the entire chorus. If accurate, it would destroy the only thing buyout firms have left post-credit crunch: Strong underlying financials.