Hedge funds A fast turn

Remember the May hedge fund crisis? Critics predicted that General Motors’ bonds unexpected downgrade to junk status would shake the industry. First there would be substantial losses, and then massive redemptions. Even Alan Greenspan got into the act. The Federal Reserve Board chairman warned that «the hedge fund industry could temporarily shrink, and many wealthy fund managers and investors could become less wealthy». Well, it hasn’t happened yet. Instead, in June hedge funds had one of their ...