QUOTEBOX-Hedge funds, investors ponder rough year

MONACO, June 19 (Reuters) - Hedge fund managers, administrators and investors gathered in Monaco this week for the annual GAIM industry conference following a tough year marked by poor performance and client outflows.

Following are selected quotes:

ON THE INDUSTRY:

JONATHAN FEENEY, INVESTCORP INVESTMENT ADVISORS

"In the last five years or so ... everything was flying and no one cared about risk management. It's only when problems arise that it suddenly becomes a focus, and then it's too late.

"With a new manager, it's horrible to say this, but it's got to the stage now where you want to check the office exists. It's the paranoia now post-Madoff."

ANDRE DU PLESSIS, CORPORATE DIRECTOR, HERMES FUND MANAGERS

"Sometimes it's absolutely astounding, the level of fees, particularly the layering of fees.

"If the private investors who pay these fees were to sit back and look at what percentage they're paying of potential alpha, they'd probably be stunned.

"The fees are two or three times the potential alpha in many cases. You really have to do the maths."

RANDALL DILLARD, CO-FOUNDER, LIONGATE CAPITAL MANAGEMENT

"It's their (investors) money, it's not your money. Perhaps the most disturbing element I've found is single managers saying 'I don't want to be a cash machine', forgetting whose cash it is."

STEPHEN ZIFF, COLLER CAPITAL