Comments on: US Hedge Fund Withdrawals Reach $43 Billion in September

By: max vega

max vega — Fri, 17 Oct 2008 14:20:00 +0000

and i wanted to find an internship in the hedge fund business. definitely not a good time to do so.. hard times for master students.

By: David

David — Thu, 16 Oct 2008 17:48:00 +0000

pardon my math..the mac calculator doesn’t even go that high…172 something or other. The more it seems rarified and incalculable the more it seems like graft and corruption.

By: David

David — Thu, 16 Oct 2008 17:43:00 +0000

'Course they say the hedge fund (derivative) market is worth a notional value of now $590+ Trillion dollars. Kind of ridiculously high eh? Finally got a answer to why the fake number here:http://www.slate.com/id/2202263?nav=wp

Okay, at approx. 40 times the actual amount derivatives should have gone down more than up...43 billion times 40= minus $1780 billion dollars!! I think that is 18 trillion dollars..ahem? So why is the notional value still going up? btw, what does "notional" value mean anyway?

And why is Andrea Mitchell on the TV so much?

also, isn't it true that withdrawals can only be done on a quarterly basis? So next withdrawal won't be until next year?

By: eh

eh — Thu, 16 Oct 2008 17:11:00 +0000

Is that a lot? With all these numbers being thrown around daily it’s not at all clear anymore what is and is not a large amount of money.

By: curlydan

curlydan — Thu, 16 Oct 2008 15:37:00 +0000

anonymous 4:06AM:if withdrawal of 43 bln has this impact on markets, what will happen if hedge fund investors withdraw 30% of their funds…

Well, let’s put it this way: 43B was 2.2% of the 2,000B market quoted above (not sure if that’s US only). 30% withdrawal would be 600B and that will leave a mark.

By: Anonymous

Anonymous — Thu, 16 Oct 2008 13:29:00 +0000

Anon 7:59 said
"I will not be surprised to see an eight multiple before this is over."

I wouldn't be surprised to see an 800 multiple when this is over. 800 times 50 cents in SP earnings! It is quite possible that SP actually loses money in 2009/10 -though energy companies should provide some boost.

What sort of P/E ratio do you put on SP500 with an "E" of zero?

By: Anonymous

Anonymous — Thu, 16 Oct 2008 11:59:00 +0000

Stand Clear - the next CB bubble is about to blow.

The synthetic markets that the hedge fund world has been feeding for the last seven years is imploding. No buyers for growth only assets is the dream weaver nightmare. Too many buyers is the value investors' nightmare.

Equities priced to return a real, risk adjusted rate of return through dividends and generate an increasing stream of cash flow through sustainable growth will provide the bottom, eventually.

It wasn't long ago that the talking heads were marvelling at the elimination of volatility through the transfer of risk to those able to accept it. I laughed out loud at the time.

The speculative, unregulated hedge fund culture has made a mockery of the free, competitive market concept and must die.

I will not be surprised to see an eight multiple before this is over.

By: fresno dan

fresno dan — Thu, 16 Oct 2008 10:23:00 +0000

withdrawals for October will be 379 gabazillion dollars

By: Anonymous

Anonymous — Thu, 16 Oct 2008 08:06:00 +0000

if withdrawal of 43 bln has this impact on markets, what will happen if hedge fund investors withdraw 30% of their funds…

By: Viv

Viv — Thu, 16 Oct 2008 07:54:00 +0000

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOb4n0deWmNU

EU leaders called for a global summit as soon as next month to rewrite the 1944 Bretton Woods accord that paved the way for Europe's post-World War II reconstruction and set up the institutions that oversee the world economy today.

“We had the emerging market crisis, we had the Internet bubble, now we have this massive crisis,'' French President Nicolas Sarkozy told reporters after chairing the first session of an EU summit late yesterday in Brussels. Europe insists on the “re-foundation of the international financial system.''