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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: Bid Buster who wrote (444)3/3/2007 11:10:55 PM
From: SouthFloridaGuyRead Replies (2) of 1718
 
<<Sure hedge funds have been around forever, but not in the numbers they are today, just look how many hung a shingle out in the last 10 years.>>

Proliferation of technology, expansion of financial markets, increasing global wealth, increased avenues for investment; all very legitimate reasons why the hedge fund industry as grown.

<<IF a global melt down comes the exits will be crowded.>>

Weeeeelllll, sure. That's like saying if a nuclear bomb hit, you'll be dead.

Now if you said that hedge funds would be significantly hurt because in aggregate they would not be able to beat on a risk-adjusted basis, I'd pay more attention to your argument. If you said that the cost of leverage was prohibitively high and that hedge funds were prone to blow-up risk in the near future, I'd listen. But you didn't and you can't.

I kid you not because of this week alone, my firm's client service team estimates we'll raise $500mm in the next 6 months. So your end of the world thesis will have to wait a little longer.
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