He expects the experience to yield insights, but few conclusions. “These are huge countries with millennia-old cultures. The idea that I’ll come to grips with them is preposterous,” he says.Going short, for the long run Steele says technology is permeating its way through society, and if companies don’t exploit the opportunities made possible by technology, they will suffer as the rest of the market evolves. Entertainment industry juggernauts, for instance, are being threatened by new waves of music distribution vehicles, such as the iPod and iTunes, and the ease with which content can be ripped. “Warner Music has been a great short over time,” he says.

“It holds up a barrier to entry and has content for sale, but they’re pushing water uphill because it has over-valued that content. The people who deliver now are those that disseminate content in different ways.” Big pharmaceutical companies have similarly been undermined by their smaller, more adaptive rivals, who use computers to empower drug research and development, says Young. “Biological research is different today than what it was a decade ago,” he says. “Today you need a degree in computer science to do research in that area.” He points to a celebrated achievement in modern science – the decoding of the human DNA sequence – to illustrate the advancements made possible by technology.

The super-computer enabled Dr Craig Venter, of Celera Genomics, to crack the human genome sequence ahead of a US Governmentfunded project with the same aim. “It was a match between a super computer and people with PhDs in white coats and test tubes,” in which technology delivered the unmatched edge, Young says. Five years ago, TechInvest itself reacted to the state of play in the broad market by adopting short-selling as a risk management and return-seeking technique. Dealing with the dotcom boom and fallout as a long-only manager “was so frustrating,” Davis says. “We would see crappy valuations all the time, but we didn’t have the tools, skills, or experience to go to the short side.

“Companies were selling at around 100-times sales. There is no world in which 100-times sales will make you money.” The performance of Intercept’s short portfolio indicates that the technique has positively influenced returns. Steele predicts that marketneutral managers, who in recent times accounted for about 5 per cent of the hedge fund market, will soon comprise between 15 and 20 per cent of it. Hedge fund survivors of the financial crisis – those that can retain investors and earn some performance fee – are positioned well to grow their businesses. “The world will drift to brand, transparency, simplicity,” he says.