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Hedge Funds Kaboom!



October 02, 2008 – Comments (7)

When I was at an investment conference in Jan of 07 I ran into a friend who was all the rave about hedge funds.  What I'd briefly seen of them, well, I just wouldn't touch them.  Later I saw estimates that about 10% of the hedge funds would completely implode, or about 500.

We've trinklings of what these hedge funds do to the markets when they implode, as a few have imploded, but they are under tremendous pressure now.

As they run into a position of having to sell off assets, well, the prices go down and then they have to sell more.  This is tremendous downward pressure on the markets and other hedge funds.

Naked Capitalism has a post on this.  

My fear of the hedge funds is also one of my reasons for being out of the market.

7 Comments – Post Your Own

#1) On October 02, 2008 at 2:58 PM, feiled (< 20) wrote:

Congrats on top player!

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#2) On October 02, 2008 at 4:59 PM, giftofgod (< 20) wrote:

Congrats, oh foolish one! I hope you get to keep top fool longer than a day.

I bet you are glad you are out right now, and I have felt for some time that hedge funds, especially those of the technical variety have been pushing things down somewhat.

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#3) On October 02, 2008 at 5:38 PM, MikeMark (28.98) wrote:

Congrats dwot!

From the look of your blog archive, your achievement comes from hard work and dedication... to preservation and true growth.

So what happens next? I'm thinking unemployment is soon to skyrocket. What about you?

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#4) On October 02, 2008 at 6:12 PM, TMFJake (93.99) wrote:

Congrats dwot!  It's great to see the Top Fool wearing a Foolish cap. :)  

And thanks for everything you do to make CAPS a lot smarter!!!

Fool On!


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#5) On October 03, 2008 at 12:59 AM, rd80 (95.01) wrote:

If the hedgies had followed you here, they wouldn't have gone kaboom.


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#6) On October 03, 2008 at 10:14 AM, dwot (28.97) wrote:

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#7) On October 13, 2008 at 2:04 PM, MaskedMan2007 (99.19) wrote:

One of my friend is working in the financial sector in Bermuda. Many of his friends are hedge fund managers. He told me that they had a tought time in October!

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