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global macro world—currencies are heavily traded.

Another implication is that the stumbling of the global macro giants frees up assets. It is not known whether these assets will leave the hedge fund industry. Many of the top hedge fund managers are closed and won't consider taking more assets unless they are from strategic investors.

Day-trader implications? Ainslie says that volume has become a less meaningful indicator of liquidity. Day traders have also made it more difficult for brokerage firms to make markets in an efficient manner. On the positive side, however, they create price-move spreads.

Ainslie is excited about the future of the hedge fund industry. He feels that institutions are recognizing the value of the investment category for its performance as well as its risk control. As institutions become more educated, they will make wiser decisions.

He doesn't feel that fees are an issue for institutions, because the relatively higher fees attract the best and brightest talent. Return/risk is very attractive after fees for many funds. The institutions won't take the second-rate firms simply because they have lower fees.

Regarding information given out to investors, Ainslie says Maverick gives just about anything on request except short positions. On a monthly basis, the firm provides performance by sector or by geography, long/short exposure by region or sector, as well as a trading summary.

Tax efficiency is also something that Maverick studies. Ainslie feels that investors should pay more attention to this, and that as time goes on they will. Initially, investors looked at only gross returns. Then it became net returns. Next, he expects the interest will be net after-tax returns.