Greenwich Time –Aggressive and secretive, hedge funds employ any strategy they wish to try to make money for high-net-worth individuals unafraid of risk.
Now, some of those strategies are trickling down to investments used by average investors. The hedge funds’ philosophy of going against the grain also has produced some side effects that are altering banking and personal investing:
— They’ve picked up risky business that would otherwise be imploding on bank balance sheets.
— Everyday investors who desire a piece of the hedge-fund pie for less money are moving assets into long/short mutual funds. Congress, viewing collapse of the subprime lending market with alarm, is concerned about the involvement of hedge funds in the collateralized debt obligation market. Yet, some experts consider that a positive hedge-fund influence.
