The ability of the system to absorb the shock demonstrated that the hedge fund sector has become more mature and has the ability to repair itself in the event of idiosyncratic distress.
However, it should also be recalled that this event occurred against a backdrop of rather benign market conditions, and it cannot be excluded that in a more challenging market environment, such as that which characterised markets after the Russian crisis in August 1998, the impact of such an event could have been more disruptive.