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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (37610)	8/2/2005 7:27:50 PM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

Indeed, a large majority of hedge funds are not significantly leveraged, having balance-sheet leverage ratios of less than 2-to-1 i don't really have a feel for the overall composition of the hedge fund market, in terms of how many are gunslingers and how many are conservative. but with 8000 or so hedgies today, even 1% (80) crazy men can do a lot of damage if they have LTCM aspirations. i was speaking with an institutional friend and his perspective on the hedgies was very different from what i think is marketed to many so-called qualified investors. basically, when this pension fund looks at a hedgie, they want to see where the alpha is. they don't want to pay for beta. and a lot of these "brilliant man" type hedgies seem to mainly provide beta while charging hedgie fees that only make sense if one is getting alpha.