2nd September 2011
Hedge fund managers with their wide range of strategies that aim to make money out of rising, falling and going nowhere markets are often hailed as the masters of the financial universe. Even scam boiler rooms – see warning below – know this.
So August's market meltdown , which proved a bloodbath for many conventional funds should have been a massive pay-day for hedgies.
While classic funds could only batten down the hatches and wait for an eventual upturn, or sell into an already weakened market and hold cash, hedge funds should have been laughing. But they weren't.