The Money Times – Short-sellers and hedge funds, though sometimes shadowy, are also sometimes seen as the smartest guys in the room. They did their homework and will bet their capital against the crowd. It’s not the most popular way to go, but the rewards can be quite lucrative.

On Motley Fool CAPS, we have our own brand of investors who found the chinks in a company’s armor and correctly called its fall. "Underdogs" are investors who earned 100 or more CAPS points correctly predicting one or more stocks would underperform the market.

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Tags: armor, chinks, crowd, homework, investors, money, motley fool caps, rewards, short-sellers, smartest guys in the room, stocks

Stuff – The beleaguered hedge fund industry is rife with talk of consolidation, as dwindling asset bases eat into firms’ profits, with the key barriers likely to be hedge fund managers’ egos and poor rewards for sellers.

Man Group and RAB Capital have both indicated they are in the market for smaller hedge funds, while Cheyne Capital and GLG have separately announced deals in recent months.

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Tags: consolidation, egos, hedge funds, hedge-fund-managers, man-group, profits, rab capital, rewards

Black Enterprise- A team of young managers formerly with hedge fund Brahman Capital is preparing to launch a fund in August to focus on Western European turnaround situations, the firm’s founder said.

Cara Goldenberg, a 27-year-old former star investor and partner at the $3 billion Brahman Capital, heads the new firm, called Permian Investment Partners. She is joined by former Brahman colleagues Alex Duran and Scott Hendrickson.

New York-based Permian hopes to raise some $200 million this year, mostly from wealthy individuals and families, said Ms. Goldenberg. The firm was seeded with what it said was a "sizable" investment from Privet Capital, a family investment firm.

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