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Friday, August 31, 2007

Hedge Fund Managers

In good times, when the bubble was growing, hedge fund managers made tens of millions of dollars. They invested the funds in sub-prime mortgages and collaterialised debt obligations. They were able to show a good return on a growing bubble.

When the crunch comes, who takes the loss? The investors. The hedge fund managers were not required to pay back the tens of millions of dollars that they earned.

Lesson: Do not invest in hedge funds.

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