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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (55895)	11/13/2004 12:14:37 PM
From: Ramsey Su	Respond to of 74559

I think that is exactly the problem with hedge funds because they are no longer hedge funds of old. It is basically a LP with a license to steal. The gamble mentality has no penalty. If they win, pocket the profits. If they lose, close the fund and start a new one, counting on the dumb investors who will roll with them. Now the problem is the amount. As we all know, the big mutual funds drive the underlying markets until the hedge funds are now in control of almost $1 trillion with very quick fingers. What I would like to know, if anyone has the information, is the total short interest over time. I know we can get the monthly data about 2 weeks after the fact for the previous month. nasdaqtrader.com If hedge funds start failing, or voluntarily start closing, how much buying may be needed? With the growth of hedge funds in the last few years, what had been created were phantom shares that had been sold. In many cases, it created 10+% outstanding shares. If hedge funds buy back that 10% of a specific issue, then the cash switch back to the long side, it may create such a huge artificial demand that end up in Equity Bubble II? Anything wrong with that logic?