Sunday, September 2, 2007

India real estate market and U.S. Subprime crisis - 7

How do hedge funds operate in spite of so many probing eyes?

Hedge funds have their own fishing technique. They know how to hook a big fish even in shallow waters.

However, regulators around the world feel that hedge funds make the water dirty. Even the slightest hint of trouble draws the needle of suspicion in their direction. Fear of even one hedge fund going bust is enough to cause tremors in the financial markets. Names of failed hedge funds such as Long Term Capital Management and Amaranth spark instant recollection.

So how do hedge funds operate in spite of so many probing eyes?

Maybe our friends Jinny and Johnny (Shailaja & Manoj K. Singh) will be able to throw some light on this subject:Unregulated risk-hedging formula - livemint

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