Savvy managers are well-positioned, while the naïve
lose their illusions By Josh Friedlander Cash is king. That's
the message in the markets today, and one that managers are
hearing clearly from investors who have decided to take their
money, creating a run on the hedge fund bank. Billions of
dollars had been pulled out even before the September
redemption flurry, from such hedge funds as Harbinger Capital
Partners, Highland Capital Management and HBK Capital
Management, but more big names have begun to feel the heat.
Citadel Investment Group, BP Capital Management, Copper River
Management, Millennium Management, and Ramius Capital are just
a few of the latest facing redemptions. Hysteria is gripping
the markets, with doomsayers estimating that anywhere between
15% and 75% of all funds will go out of business within the
While the hedge funds may find themselves starved for
financing, the government won't be there to bail them...