Naked Short Club discussion raises questions about whether hedge funds still provide diversification, as well as Esma’s final advice on the alternative investment fund managers (AIFM) directive.

Questions about whether the hedge funds have lost their diversification benefits were addressed during the latest edition of the Naked Short Club.

The European Union’s alternative investment fund managers (AIFM) directive was also discussed following publication of the level two advice by the European Securities and Markets Authority (Esma). Its opinions are now with the European Commission.

Guests on the show included Wallace Wormley, managing director at Ospara; Alessandro di Soccio, managing partner at Titian; Richard Watkins, managing director at Liability Solutions; commentator, consultant and author of No Fear Finance and lecturer at Cass Business School, Guy Fraser-Sampson; Alexandre Pigault, founder of Meta Hedge; John Shook, director at De Putron; and author and consultant, Sona Blessing from Opalesque.

The Orb, Velvet Underground, Neu, Gong and Hawkwind provided music.

Feedback on the show should be sent to host and presenter Dr Stu, winner of the special editor's award for outstanding contribution to the promotion of the hedge fund industry at Hedge Funds Review's Tenth European Fund of Hedge Funds awards.

The Naked Short Club is broadcast live on most 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.

The next show will be broadcast on November 28. Guests joining the panel will include Alexandre Col, head of investment funds at Banque Privée Edmond de Rothschild; Chris Keen, partner at Culross; Rob Passarella, managing director at Dow Jones; Jiri Krol, director, government and regulatory affairs at the Alternative Investment Management Association (Aima); Damien Loveday, head of alternatives at Towers Watson; Niki Natarajan, editor of InvestHedge; Davina MacKail, The Dream Whisperer; writer, city talent manager and CEO of Ignite, Sarah Dudney; Nicola Vallance, the Kiwi Prodigal; and the Mysterious Vanessa Haerry.