Financial Times - Hedge funds are going down with dignity
http://www.ft.com/intl/cms/s/0/69aa9b50-c33a-11dd-a5ae-000077b07658.html#axzz3gjbOxjDE
Hedge funds have relatively steep requirements on their investors: $5mil in liquid assets for individuals, $25mil for an institution. They are privately run, privately funded, and the industry manages about 2 trillion in wealth (at least it did at the start of 2007). It's now estimated that by the end of the year half of that wealth will be out of hedge funds, some of it lost by poor returns, some of it withdrawn by skittish wealthy investors. One of the problems with the funds that might ruin the chances of the industry bouncing back easily is that they set limits on how much of your own money you can get back, the timing, etc.-- the investment can be illiquid-- and this can sour investors. Because they aren't looking for a government bailout and are simply going down with the ship, John Gapper considers them noble.
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