Wednesday, May 2, 2007

Economy - Wednesday (Investor's Business Daily)



Investor's Business Daily - The $1.4 tril hedge fund industry could face a crisis similar to that in '98, when the collapse of Long-Term Capital Management threatened the global fin'l system, according to the New York Fed. The recent high correlation among hedge fund returns suggests funds may be concentrating risk on just a few market positions, it said. Lightly regulated hedge funds borrow huge amounts of money to make aggressive financial bets.



Source: http://rss.news.yahoo.com

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