Paulson Ucits fund: will Europe's selectors invest in it?

Michele Gesualdi, from London-based fund of hedge fund specialist Kairos, is awaiting further information on the new fund before passing judgement, but thinks if Paulson is willing to put risk on the table with his Ucits fund it could prove successful.

'Hedge fund managers are not paid to hold cash, and the industry needs to take more risk at the moment. If people like Paulson will come and take risk then they will probably have their share of success. The low risk levels we are seeing at the moment are bad for the industry. It is important people take risk, at least with their gross exposure. We are seeing a lot of managers holding a lot of cash and with a gross exposure of only 50% or 60% which is way too low. It may be the summer, but it is still possible to make money.'

We would be interested to hear the views of other selectors below.