[lbo-talk] hedge funds

[Rakesh Bhandari]

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