Mighty Hedge Funds Go Fetal

Post columnist David Ignatius has a good look today at the smarter-than-thou "alpha" hedge funds who thought they could manage risk so expertly as to make it simply vanish.

Oops.

Hedge funds -- typically private, open to select investors who put in a large amount of money -- are in real trouble.

In September, $43 billion drained from hedge funds, as investors wanted their money back so they could convert it into cash, creating the biggest one-month drop ever in hedge fund value.

So far this month, hedge funds have lost an average value of an additional 8.4 percent, according to Hedge Fund Research.

-- Frank Ahrens

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