Sunday, August 24, 2008
There was an article about hedge funds in Barron's this weekend and its the kind of article you are sure to see repeated by various media outlets in the coming months. Hedge fund investors want their money back before it evaporates completely especially in the poorest performing Hedge Funds. But Hedge Funds are changing the rules on them. They are putting a moratorium on redemptions to stem the tide of money out of these funds. So here is a valuable lesson about hedge funds in a bear market--they are like the proverbial "Roach Motel" you can check in, but you cannot check out.