Hedge funds a bad place to be

This article from the New York Times but republished in the International Herald Tribune forecasts bad times ahead for hedge funds, similar to the tech bubble of a few years back. This is because of the huge amounts of capital heading toward hedge funds.

“It is completely obvious that this will end badly – for the firms, investors, everyone,” said Seth Klarman, founder of Baupost Group, which manages $5 billion. “No area of financial endeavor is immune from the effects of competition.”

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