Over the hedge

Perhaps the most interesting (and/or terrifying) part of this article in Vanity Fair is the bizzarely distorted pictures of the various hedge fund managers that it mentions.

Aside from that it is a decent rehash of everything that is going on in the hedge fund world. One interesting quote:

Others in the industry also say that preventing investors from taking their money out is nothing short of an admission that the assets in the fund can’t be sold as they are currently valued. One manager tells me that he has a debt security that he is valuing at 50 cents on the dollar. He knows another fund that is marking the identical security at 90 cents on the dollar.

In an earlier post I mentioned that the ’08 returns were not as bad as I would have expected. With the above quote it sounds like there might be another shoe to drop (even leaving aside the early bloodbath in the markets this year).

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