Hedge fund flaws: Hedge funds need topiary

Hedge funds are facing hell and high water. Redemption hell, that is. Then there are “high water marks”, another plank of their model that is failing now that funds are losing money. They need to fix such flaws if they are to fight another day. The list of funds blocking cash-hungry investors from withdrawing their money is growing daily. Tudor Investment, listed Fortress Investment Group and dozens of others have done so at least temporarily. The rationale is to protect the fund’s remaining in...