ajtj99's Market Pulse

[hunkerdown]

aj...care to comment on hedge funds...
I keep finding lots of print on money leaving hedge funds in a big way. I remeber talk of when baby boomers started pulling there money out it would hurt the markets. Do you think a haircut in hedge fund money will have any effect or is it no big deal?.

Bloomberg:
- Hedge-fund assets may fall to about $1 trillion by the middle of next year, a decline of almost 50 percent from their peak in June, because of market losses and client withdrawals, Citigroup Inc.(C) said in a report. Managers are likely to see investors, led by funds of funds, pull 20 percent of their money, Tobias Levkovich, an analyst at the New York-based bank, wrote yesterday. Funds of funds are middlemen who select hedge funds for their clients. ``The so-called `Swiss hot money' wants out and funds are responding,'' Levkovich wrote, referring to Swiss investors who have a shorter investing period than pension funds. ``Citi's credit analysts estimate that hedge funds have raised cash to roughly 40% of assets already in anticipation of known redemptions and possibly unanticipated demands from investors.''