Discussion on the latest Naked Short radio programme ranged from algorithmic trading and market stability to the continued viability of funds of funds, regulatory developments and return prospects.

Special guests joining host Dr Stu on the hour-long programme included Chris Keen, partner at multi-managers Culross; Matthew Sargaison, chief risk officer at MAN AHL; Tapio Pekala. CEO of Theme Investments; Paul Netherwood, partner at CTA Beech Horizon; and Neil Wilson, managing editor of Hedge Fund Intelligence as well as City head-hunter and writer, Sarah Dudney and BH Fraser, known as the City poet.

Sargaison led a discussion of government intervention in markets looking at what this means for financial markets in general and the hedge fund industry specifically. Questions were raised about regulatory developments such as the European Union (EU) alternative investment fund managers (AIFM) directive and proposed regulation of over the counter derivatives clearing as well as Basel III, the Volcker rule and naked short selling bans.

Chris Keen. One of the most notable features of the post-crisis period has been the decline of funds of hedge funds. Keen reflected on whether this was a permanent shift or a short-term trend. Discussion also centred on the development of Ucits funds of fund structures.

Pekkala looked at hedge fund returns and realistic sources of alpha, answering the question of whether the financial crisis is at a turning point and if investment in future will be different compared with the past 30 years.

Guests discussed whether the investment landscape is changing. For example, were there secular changes in the time horizons of opportunities in the real economy, changes in corporate structures and behaviour, the growth of quantitative strategies and the shift of capital from traditional OECD countries to emerging markets.

Netherwood examined the pros and cons of discretionary versus systematic strategies.

Music featured on the programme included the Orb, Jimi Hendrix, Velvet Underground, Love, Gong and Hawkwind.

Feedback on the show should be directed to presenter and host Dr Stu.

The N@ked Short Club broadcasts 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.

Resonance 104.4FM is a not-for-profit, UK-registered charity supported entirely by grants and voluntary donations.