istockAnalyst.com  – First it was the sovereign wealth funds, controlling vast portions of American companies. Then it was the private equity cowboys who came in and took public companies private, removing them from public investment – and scrutiny.

Finally, there were the hedge funds, large pools of private money moving the markets and making stunning returns at the expense of small investors.

Just like their predecessors, who have found that they aren’t as invincible as once believed, hedge funds are having a difficult year. Seven percent of all hedge funds closed in the first three quarters of 2008 – nearly 700 of them. That doesn’t even include the fourth quarter.

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Tags: cowboys, fourth-quarter, investors, pools, predecessors, private money, public investment, scrutiny, three-quarters