The CNBC screen flashed with massive losses of hedge funds. 18% down, 14% down, 20% down.....
It appears Dr. Doom is batting 1000 for he just predicted the hedge funds would be next to collapse.
While they are blaming a ban on short selling, one foreboding issue pops up:
Some pension funds and endowments that have relied on hedge funds for a stable, higher-than-average source of investment returns have been watching the unfolding trouble with alarm
The Independent has the scoop:
Redemptions means people are saying give me my money, I want out!
Hedge funds could have an unprecedented level of cash pulled out by investors this quarter, according to insiders, just as they faced millions of pounds of losses from last week's shock regulation of short selling. It has been a tough year for the industry with high-profile funds blowing up, clients increasing redemptions, as well as public fury over short selling and increased threats of regulation
Hedge Fund Implode O' Meter tracks the latest.
Calculated Risk has a good post on this.