Hedge Funds Scrutinized

In an earlier post, I described, generally, what a hedge fund is.  In that post, I mentioned that a hedge fund’s biggest worry is that large numbers of investors will want to redeem their interest in the fund, an event that can snowball into a fund’s demise.   The NY Times Dealbook just published an article showing how investors in some funds are trying to pull out of formerly high return funds.    Hedge funds are acting like they should in the face of ultimate demise, lowering fees and trying to win back credibility with investors.