[lbo-talk] hedge funds

Rakesh Bhandari bhandari at berkeley.edu
Tue Dec 18 13:56:42 PST 2007


But Doug wasn't the reason for hedge funds to make headway when stock markets aren't? What about the promise of making a profit even when the market is moving in a narrow range? Seems illusory now. As Daniel Altman writes--he notes that the amount of money managed by hedge funds gres from $200 million in 1999 to $1.2 trillion in 2005-- hedge funds predict or identify small discrepancies in prices, and then funnel in huge amounts of cash--much of it borrowed--to take advantage. Connected, pp. 145-6 But if hedge funds are a false promise, it does seem that the stock of idle liquid money capital looking for real investment opportunities is indeed mounting. Have yet to speak to Seth's critcism. R



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