Thursday, August 02, 2007

LAT on Hedge Funds

by Tanta on 8/02/2007 11:36:00 AM

Kimono firmly closed, we learn:

Some hedge funds that have suffered losses on investments are closing the gate on clients who want to pull money out, a move that could further undermine confidence in already shaky financial markets.

Temporarily barring withdrawals, though legal, also could damage the image of the hedge fund industry, which in recent years has attracted hordes of well-heeled investors seeking high returns. The industry has mushroomed to 9,700 funds with $1.7 trillion in assets.

"Psychologically, separating people from their money is generally considered to be a hostile way to behave," said Ron Geffner, a partner at New York law firm Sadis & Goldberg.
Hordes of well-heeled investors? Is that the opposite of a select group of unwashed masses?