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To: GVTucker who wrote (67189)	10/22/1998 5:42:00 PM
From: Badger	Respond to of 186894

Regarding the effect of hedge funds, an excerpt from Money Online: pathfinder.com * Hedge funds can drive prices of individual stocks far below their fair value, since they take large positions in individual stocks or bonds. While most hedge funds are not facing troubles of the kind Long-Term Capital experienced, many are being forced to come up with cash to pay creditor banks and for investor redemptions. "They then have to liquidate their holdings of healthy, liquid investments in a big hurry and that can cause the stocks they're selling to take big hits," says Jeff Benjamin of Cerulli Associates, the author of a report titled "The State of the Hedge Fund Industry." Traders point, for example, to such highly-liquid technology stocks as Dell (NASDAQ: DELL), Cisco (NASDAQ: CSCO), Microsoft (NASDAQ: MSFT) and Intel (NASDAQ: INTC) as examples of companies hit by recent hedge fund fire sales. And it gets worse: "Many hedge funds expect to be experiencing heavy redemptions at the end of the year," says Lois Peltz of MAR/Hedge, a firm that tracks and analyzes hedge funds. Badger