[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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