Performance

Searching the airline junk yard

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The hedge fund industry has no sense of history. And this can be a good or bad thing depending on how you look at it. Mistakes will be repeated by newcomers failing to realize how other fund managers ran into trouble, but at the same time fund groups won't be deterred from placing similar bets that may actually pay off.

Take the airline sector as a sample case. Big investment bets on battered airlines stocks apparently poised for a turnaround have had a dubious history for the hedge fund industry. Just ask Tiger Management's Julian