Monday, Jun 25, 2007
OLD ARTICLE BUT LOOKING IN THE REAR VIEW MIRROR ??
times: City hedge funds head for domino collapse
May 15, 2005
BAD investments by some of the biggest hedge funds in London have triggered unprecedented losses, record demands for money back and talk of a death spiral weighing heavily on stocks and bonds.
GLG, a hedge fund started in 1995 by a group of former Goldman Sachs bankers, has in recent weeks had demands for more than $500m (£270m) from investors wanting to pull out of its $4 billion market-neutral fund.
Posted by out of control speculators @ 08:09 PM (162 views) Add Comment
4 Comments
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1. royston said...
Listen, that popping sound you hear is the sound to hedge funds imploding in the distance!
2. royston said...
"I love the smell of napalm in the morning"
3. Timbuk3 said...
Funny how times change, GLG are just floating and the founders are each trousering about £1bn....
4. Hedger said...
My hedge fund is currently up 3% this month with no redemptions.
The first quater of 2007 saw the largest net inflows to the hedge fund industry in history. This is another scare story written off the back of some market rumours and because 10's (of 1000's) funds have had a bad month. Why do you doomsayers ignore the fact that SE Asian governments are starting to use all their fiscal surpluses to invest inthe global equity markets, increasing company earnings and better margins. On a historical scale, P/E ratios are still pretty cheap.
These funds are credit/debt funds. Obviously they are going to have a bad run. The rating agencies have completely screwed up the ratings and the debt has been rerated and thus taken a huge hit on its value. This is no surprise.
When the markets do tank. And they will, I do not believe we are in some new fangled era of economics, the hedge funds that you appear to take so much pleasure in denigrating will be the only way of getting inflation + returns on your cash.
If the fiscal world is going to end, why are you even bothered with the house prices? You seem to be looking forward to disaster so much that you dont seem conscience of the effects of what you are hoping for.