Are hedge fund collapse fears overblown? http://www.reuters.com/article/reutersEdge/idUSN3157105420070731?src=080107_0822_INVESTING_comment_n_analysis&sp=true
Tue Jul 31, 2007
By Neil Shah
NEW YORK (Reuters) - There's plenty of smoke rising from hedge funds with risky mortgage investments, but Wall Street may not need to yell "Fire!" just yet.
The near-wipeout of two prominent funds run by investment bank Bear Stearns Cos. (BSC.N: Quote, Profile, Research) last month is stoking fears that more of these secretive investment pools are hiding billions of dollars in losses on complex securities linked to subprime mortgages, or home loans extended to low-credit borrowers. http://www.reuters.com/article/reutersEdge/idUSN3157105420070731?src=080107_0822_INVESTING_comment_n_analysis&sp=true