Isn’t the idea of hedging your bets a way to minimize losses during times of a down market? Why, then, are hedge funds in just as much trouble as the rest of the market? Shouldn’t they have been a hedge against all of this?

Apparently not. Apparently the fund type namesake no longer applies. Apparently most hedge funds are just “riskier investments” that don’t necessarily have any exposure to true hedging. Goofy. It just seems like if there was any time for hedge funds to shine and show what they’re all about, this would be it. Instead, just the opposite is happening and they appear to be helping take everyone down.

Or, maybe, I’m missing the point.

Posted by Shane on October 9, 2008 7:13 AM | Permalink