JAPANESE HEDGE FUNDS - Longing for experience

2006 was a torrid year for Japan-focused hedge funds, with poor returns in volatile markets resulting in a raft of redemptions, closures and withdrawals. But domestic demand spurred by an aging population dictates that a wall of pension money is still seeking a home in the industry. This return of assets only highlights the country's need for more risk-savvy managers to avoid a repeat of previous, costly mistakes. Rupert Walker reports.