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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33243)	1/11/2009 1:54:08 PM
From: Spekulatius	Respond to of 78625

OT fund of funds - Article from the WSJ Hedge-Fund Middlemen Get Pinched By JENNY STRASBURG The business of recruiting investors to hedge funds boomed over the past decade and helped drive the hedge-fund frenzy. Now, investors burned by big losses in hedge funds are dumping these middlemen. The combination of market losses and investor panic resulting from money manager Bernard Madoff's alleged Ponzi scheme is putting the heat on firms that pool money from clients and invest in hedge funds. Last year, these so-called fund-of-funds assets overall shrank for the first time since 1996, according to industry tracker Hedge Fund Research, or HFR. online.wsj.com Could be very valuable information from a liquidity perspective. According to the graph shown in this article there was still about 650B$ invested in fund of funds. I guess this number will now shrink dramatically due to collateral damage. I hear anecdotal evidence that this is happening on other threads where investors are calling it quits after Madoff and money managers are shutting down. I know I am probably diverting attention away from the main topic off the thread. I am finding myself more and more watching these macro or liquidity trends since i believe they determine the direction of the market. If anybody minds those OT post I am going somewhere else with this stuff, thought about using Q8 now abandoned thread for this.