There's plenty of reasons to believe that these respectable (did I say that?) Hedge funds (read wanton leverage junkies) have made amateur's mistakes in over leverage especially in their equity scavanger hunting.
I reckon that after the Master SAC himself showed us in the WSJ what a really ordinary guy he really is, and that having hundreds of millions in ART alone is okay (I wonder what SAC pays for shower curtains????) and SAC thinks 8000 hedge hogs out there is 6000 too many.