As noted earlier, this will continue my series of posts on the deleveraging of financial markets. This time it is the unraveling of a couple of hedge funds run by the investment bank Bear Stearns that is weighing on the markets. The ‘High Grade Structured Credit Strategies Fund’ invested in cash and derivative instruments tied.
Yes, you read that right. Hedge fund growth slowed to only 37% year over year from a 53% previously. Total hedge fund assets are now estimated at $2.5 trillion. http://www.institutionalinvestor.com/Article.aspx?ArticleID=1361809 At this slower rate of growth, hedge funds will control about $10 trillion in assets at the end of the next four year period (2011). Now,.
If you haven’t read about SWF’s lately, you’ve been missing the juicier parts of the financial press. I guess when general interest newspapers in the U.S. need to goose their circulation, they go for celebrity gossip, alien abductions, or Roger Clemens’ contract. When financial papers need to goose their circulation they trumpet the latest large.
“Come gather round people wherever you roam And admit that the waters around you have grown And accept it that soon you’ll be drenched to the bone If your time to you is worth saving Then you’d better start swimming or you’ll sink like a stone For the times, they are a changing” Bob Dylan was.