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To: DebtBomb who wrote (97708)	12/18/2007 11:10:58 AM
From: SouthFloridaGuy	Respond to of 306849

I don't think hedge funds will be toast. Some will, it's a part of the process, but in aggregate I think the industry will prosper. The SELL-SIDE is where the evil is. What the hell is an Investment Banker other than a well paid snake oil salesman? Think about it. If everyone here is so bearish would you rather be in a hedge fund (industry up 12% this year despite all the biased negative reporting) or a mutual fund? What do you guys think Hussman is doing? What do you guys think you all are trying to do? You, he are just doing what hedge funds try to do - make money in all environments. I can already tell you what the big pension allocators are doing. A lot of them thought the early part of the decade was a fad and got lured into the low volatility of the equity and credit markets. Now they are thinking, "Oooops, I did it again". They will be coming back, begging for capacity - they already are - and we're saying F*ck you to the ones who left on bad terms.

To: DebtBomb who wrote (97708)	12/18/2007 11:12:51 AM
From: TheStockFairy	Read Replies (8) \| Respond to of 306849

hmm, the stock market is dead, the bond market is dead, the housing market is dead and the dollar is dead, even the physical dollar is dead. doesn't leave much to invest in then, you are paying too much for gold and international investments and any stock you buy is going to collapse in a derivitive implosion. if you hide the dollar under your bed, you are just going to lose to inflation and currency devaluation. it's also too late to short the dollar. i guess its going to be a tricky year.

To: DebtBomb who wrote (97708)	12/18/2007 11:22:09 AM
From: Real Man	Respond to of 306849

You got that right. Hedged put selling for income = LTCM strategy. Increased volatility in stocks and currencies is very dangerous, it leads to repricing of risk. Lots of hedge funds have been effectively shorting volatility in recent years with leverage, funds that showed 40% annual returns in the past 5 years. This is similar to portfolio insurance of 1987, times 100 or 1000. -g-