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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (106128)	2/22/2008 9:51:38 AM
From: DebtBomb	Respond to of 306849

I agree that some of the long-short hedge funds will be fine. The problem is, most of the hedge funds created over the last 5-7 years have been long-only hedge funds....and they are toast, IMO. You see them dropping like flies weekly. Paul Meeks run a long-short hedge fund, he's probably fine. He seems to know what's going on. I wonder about Barton Biggs....and if he'll blow. He seems too bullish to me.

To: Hawkmoon who wrote (106128)	2/22/2008 11:52:08 AM
From: XBrit	Read Replies (1) \| Respond to of 306849

But for those Hedgie managers who can continue to sucessfully play the long and short game, money will likely continue to flow to them... After all, a "long only" fund manager is at a distinct disadvantage to a sharp-minded Hedge fund manager who can go long or short. Bill Fleckenstein has addressed this a couple of times on his site. In his opinion (and I assume he has the research to back it), the vast majority of hedgies are long-only, with a large proportion being basically momo chasers who have ridden the bull upwards using leverage. I think Fleck is a pretty reliable source on something like this, since he's right in the middle of it. So the unwinding of leverage from long-biased hedgies really is likely to be a powerful downward force now and going forward. Edit: I see Dale W posted the same thought.