"Hedge funds brace for '09 pain" by Associated Press | January 13, 2009
NEW YORK - Year after year, the hedge fund industry dazzled Wall Street by delivering "absolute returns" - outsize profits whether markets rose or fell. Using sophisticated trading models, the pools of managed capital made wealthy people wealthier with eye-popping returns that carried seemingly moderate risk.
Not these days. Blindsided by a colossal market collapse and the widening Bernard Madoff scandal, hedge funds suffered their worst showing on record last year. And they're bracing for more pain in 2009. The industry's fall proves that even the quantitative brilliance and market wizardry of elite hedge funds are no magic bullet for investors during brutal times....
Yeah, I really feel sorry for the poor richers! Pfffft!
Besides the financial crisis and massive losses from Madoff's alleged Ponzi scheme, self-inflicted wounds also hit hedge funds, experts say. The funds' high-octane investment philosophy, they say, pushed many managers to make big bets with borrowed money, despite the dangers....
Oh, so it is ONE BIG CRAP SHOOT, huh?
The loosely regulated pools of capital burst onto the investment scene in 1990 with $39 billion in assets and quickly ballooned in numbers. Today, there are some 10,000 hedge funds, most of which cater to wealthy investors and promise big returns in virtually any economic climate....
Yeah, well, FUCK THEM!
I say we EAT the RICH -- especially with the hunger crisis we have going on right now!
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