Industry guests on the latest edition of the N@ked Short Club discussed 2009’s hedge fund performance with a particular emphasis on how hedge funds actually contributed alpha.

Other issues discussed on the show included whether liquidity is now overpriced, prospects in the credit markets, which strategies in general will make money in 2010, picking managers and the role of asset allocation for funds of funds.

The guests talked about alpha-beta separation, whether traditional modes of extracting returns and established business models are redundant and the impact of regulation on the industry’s future shape.

Guests for the hour-long programme included Louis Gargour, chief investment officer (CIO) at LNG Capital; Chris Jones, CIO of Key Asset Management and fellow of the Judge Institute, Cambridge University; Drago Indjic of the Hedge Fund Centre at London Business School and partner at Sunningdale Capital; Richard Watkins, CEO of Liability Solutions; Neil Wilson, managing editor of Hedge Fund Intelligence and Angela Dix.

Music selections included the Orb, the Velvet Underground, Jimi Hendrix, Tim Blake, Venezuelan Llanero music and Hawkwind.

Feedback on the show should be directed to Dr Stu.

The N@ked Short Club broadcast is on Mondays from 21.00-22.00 GMT and is replayed from 15.00-16.00 GMT every Thursday on not-for-profit ResonanceFM at 104.4FM in London or  via the web.

Resonance104.4FM is not-for-profit, UK registered charity supported entirely by grants and voluntary donations.

The next broadcast will be live at 9pm GMT on February 15.